The Ultimate Guide to Netflix Pricing: Unveiling the Latest Costs

Netflix users can expect another round of price increases. Here is a breakdown of the current costs for each subscription plan, so you can be prepared.

Gone are the days when Netflix itself proclaimed, "Love is sharing a password." Now, however, the crackdown has made it difficult for anyone not residing at the primary subscriber's address to access the platform. Disney Plus and other streaming services are also adopting similar measures.

This trend is not limited to access restrictions but also extends to price increases. With Hollywood actors demanding fairer pay in the streaming era, Netflix is attempting to boost its revenue by raising the prices of its subscription plans. Here is what you should be aware of.

Netflix price increase: How much does it cost now?

As of October 18, the cost of the Netflix Basic Plan jumped from $9.99 per month to $11.99, while the $19.99 per month Premium Plan now costs $22.99.

The $6.99 Ad-Supported Plan and the $15.49 Standard Plan will retain their current prices in the United States. Netflix disclosed the price increases in its third-quarter earnings report. This marks the first instance of Netflix raising its fees since January 2022.

Some modifications are being implemented to the subscription costs in the United Kingdom and France as well. Although the Ad-Supported and Standard Plans will remain unchanged, the Basic and Premium options in the UK will be increased to £7.99 and £17.99, respectively. In France, customers will witness the Basic and Premium Plans surging to €10.99 and €19.99, respectively.

Why is Netflix hiking its prices?

Netflix, despite its previous reluctance, has eventually decided to follow in the footsteps of its competitors and implement a price increase. The primary motivation behind this decision is the pursuit of growth. According to the company's third-quarter shareholder letter, although they temporarily halted price hikes during the introduction of paid sharing, their overall strategy persists. This strategy revolves around offering diverse pricing options and plans to cater to various customer requirements, with occasional requests for incremental payments as they continue to enhance the value they provide to their members.

With increasing production costs, the repercussions of the Hollywood strikes, and reduced consumer expenditure due to the pandemic and escalating inflation, raising prices appears to be a convenient approach to enhance revenue.

As highlighted by CNN, the costs associated with creating streaming shows are projected to further surge once the writers strike concludes, as it has led to an increase in remuneration and perks for Hollywood writers. Additionally, actors who remain on strike are also pursuing higher demands.

Netflix is among the select streaming services that generate profits, and investors are insistent on the company's continual earnings growth. Consequently, Netflix has been actively promoting its more affordable advertising tier, which allows for lower consumer prices while gradually increasing charges for advertisers. For additional information, you can explore Netflix's password crackdown rules, pricing revamp, and the SAG-AFTRA strike.