In a statement to E-Business News, Netflix confirmed that the streaming giant is set to raise rates on most North American customers as early as today (Friday, January 14, 2022). Customers on the Basic Plan who don’t have access to HD content will pay $9.99 a month instead of $8.99. There is now only a penny between the company’s baseline service costing $10 or more. The Basic tier, on the other hand, is still $9.99 CAD in Canada.
Netflix’s streaming plans have all seen price increases of between one and two dollars.
The odd number of $15.49 a month ($16.49 CAD) for a Standard Plan, which allows two simultaneous HD streams, is up from $13.99.
Premium now costs $19.99 a month ($20.99 CAD) instead of $17.99, allowing for simultaneous Ultra HD 4K streaming on up to four screens.
These tier prices take effect immediately for new subscribers. Customers who have already signed up will receive an email notifying them of the price increases in the coming weeks. As a result of the monthly increase, your next bill should reflect this.
We shouldn’t be surprised that Netflix has made this decision. With Amazon, Apple, and Disney+ on the rise (having reached 118 million subscribers in just two years after launching, according to Statistica), it faces an increasingly competitive landscape. Netflix still has the most subscribers, with 214 million.
Keeping up with the competition necessitates new series, new movies, and new ideas for content. The sum total of all of this is in the billions. Netflix is expected to spend $17 billion on content in 2021. This year, it may spend much more than that.
Subscription fees are a major source of revenue for the company. To keep Netflix at the top of the heap, those fees are going up.
What options do Americans have when it comes to budgeting? They can downgrade from, say, Premium to Standard, or even consider the $9.99 no HD plan if they watch all of their Netflix on a tiny smartphone screen.
Alternatively, you can subscribe to Disney+ for $7.99 per month or AppleTV for $4.99 per month. It’s important to keep in mind that those streaming services don’t have The Witcher or Stanger things, or most of the Disney, Marvel, or Star Wars franchise films.