Breaking: Netflix Set to Shock US & Canada with Price Hike - Here's What You Need to Know
Netflix's reported plans for price hikes in the US and Canada raise questions about the streaming giant's ongoing evolution Will this strategy prove successful for the platform's growth and customer satisfaction?
Summary
Netflix plans to increase ad-free prices soon, according to a new report.
The precise date and amount of the price increase have yet to be announced, but it will first be implemented in the US & Canada before being expanded to other markets globally. Following steps taken by Netflix to combat challenges in 2022, such as cracking down on password sharing and introducing a more affordable ad-supported plan, this decision has been made.
Netflix is set to raise its prices in the near future, starting in the United States and Canada. Over the past year, Netflix has made significant changes in response to a decline in subscribers reported in 2022. These changes have included cracking down on password sharing and introducing a cheaper ad-supported plan.
According to the Wall Street Journal, Netflix will now raise prices after the resolution of the ongoing SAG strike. The price hikes will impact the ad-supported option and will first be implemented in the U.S. and Canada, before being rolled out globally. The exact amount and date of the increase are still unknown.
Would Increasing Prices Work for Netflix?
Netflix currently offers three main pricing options for subscribers: Standard with ads ($6.99/month), Standard ($15.49/month), and Premium ($19.99/month). In response to the password crackdown, Netflix has introduced an option for Standard and Premium plans where subscribers can add a "member slot" for $7.99/month. It is unclear whether the price increase will impact both plans. Although some subscribers may cancel their subscriptions due to the price increase, Netflix has not been deterred from implementing radical plans in the past. Despite initial criticism, the anti-password-sharing mechanism was launched globally and Netflix has since experienced subscriber recovery. Therefore, it is possible that viewers' anticipation for popular shows like Stranger Things and Wednesday could help mitigate the impact of the price increase.
Netflix is not the only streaming service to increase its prices recently. Ad-free streaming services have experienced a 25% price hike in the past year. HBO Max (now Max) raised its prices from $14.99 per month to $15.99 per month earlier this year, while Disney+ announced a significant 27% price increase this summer. If Netflix raises its prices, streaming subscribers will be faced with difficult choices as major streaming platforms raise their prices universally.
