Thursday, May 23, 2024

Netflix Raising Prices Starting in May – Here’s What You’ll Be Paying

 

ANKARA, TURKEY – NOVEMBER 27: A woman holds a remote control in front a TV screen displaying Netflix logo in Ankara, Turkey on November 27, 2018. (Photo by Ercin Top/Anadolu Agency/Getty Images)

*As we reported back in January, Netflix is raising the price on customers at the start of the May billing cycle.

U.S. subscribers have been notified that the Standard subscription price will go up to $12.99 per month; $2 more dollars than the previous price of $10.99. Premium subscribers will also pay $2 more, with rates going up from $13.99 to $15.99. Basic subscribers will only have to pay $1 extra, with rates going up from $7.99 to $8.99, Variety reports.

The reason for the hike?

The company says the price increase will help pay off debt and finance original shows.

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According to the Variety article from January, Netflix is “looking to boost top-line revenue to offset its ballooning content costs, which were projected to hit $13 billion on a gross basis in 2018.”

This marks the fourth time the company has raised its U.S. prices. The last increase came in late 2017.

“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement to the Associated Press.

The company’s last quarterly report noted its 137 million subscribers worldwide, including 58 million in the U.S. But there are some concerns that higher prices could trigger a wave of cancellations.

One user of the streaming giant noted on Twitter: “I’ll continue paying $15/mo for the amazing content HBO puts out, but no, I am not paying $13/mo for 13 Reasons Why, House of Cards, or whatever other crap Netflix is putting out. And they will probably hike the price again in a few more years.”

Analysts believe Netflix will bag around $1 billion from the new U.S. subscription rates.

 

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