A picture of Netflix’s home screen on a TV. Image Source: Variety
Netflix has raised its prices for its subscribers yet again.
On January 14th, 2022, the streaming service told Reuters, “It has raised its monthly subscription price by $1 to $2 per month in the United States depending on the plan.”
The standard plan will rise to $15.50 per month from $14, while the 4K plan will rise to $20 per month from $18. The basic plan, which doesn’t include HD, is also rising to $10 per month from $9. Prices are rising in Canada as well.
This increase shouldn’t come as a surprise to the streaming service’s subscribers. This recent price hike in the US marks the sixth time that Netflix has raised its prices since 2014. The company’s continuous raising in the cost to stream can be attributed to keeping its subscribers with newer content.
|A timeline of Netflix price hikes since 2014. Image Source: The Verge|
A Netflix spokesperson gave this comment on the price hike to Reuters.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members. We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget.”
Since 2014, many new streaming services have emerged such as HBO Max, Paramount +, Disney+ and Peacock. These new services have grown to become competitors to what was once the “it” service. Subscribers do not just want to stream classic films and series, they want to stream original content.
Netflix’s original series “Squid Game” which the company said was its biggest original series ever. Image Source: Netflix/ Twitter
However, constantly creating original content is costly for both Netflix and its subscribers. To make money to produce original content, Netflix has to either gain new subscribers or ask its existing ones for more money. With already having two hundred and twenty two million subscribers globally, new subscriber growth for the streaming service has slowed.
According to the Los Angeles Times, the company reported that, “it added 8.3 million subscribers in the fourth quarter, falling short of its initial forecast of 8.5 million. Last year, Netflix added 18 million subscribers, compared with 37 million in 2020.” This has led to a plummet in market value and decrease in stocks.
According to new data from a Wells Fargo study, “2022 films like “The Gray Man” and “Escape from Spiderhead” exhibit why Netflix will spend $19 billion on content in 2022, up 13% from 2021.”
The streaming service does indeed have competition, but it is still leading the pack with holding the most subscribers globally than any other platform. However, to remain the world’s streaming giant, there is no doubt Netflix will have to get creative and more expansive.
The Hollywood Reporter says, “Netflix subscribers will receive an email and in-app notification 30 days in advance of when the new subscription prices will take effect in their accounts.”