Netflix has increased price for its standard plan in the US to $14 monthly and its premium plan to $18 monthly. The standard plan which is the most popular gets a $1 increase while the premium plan jumps from $16 to $18 monthly. The price increase applies to new subscribers immediately while current subscribers will pay the new price on next renewal.
Netflix last increased price on all its plans in the US in January 2019 and most recently in Canada. A Netflix spokesperson told The Verge the increase “in the US does not influence or indicate a global price change,” which means prices are reviewed on a country-by-country basis. The spokesperson also revealed the changes came “so that we can continue to offer more variety of TV shows and films,” this might make some sense but there are a lot of streaming options today with the likes of Disney Plus, HBO Max and Amazon Prime Video all in competition with each other.
With the increase in competition, it is important for Netflix to keep churning out quality content on a continuous basis, hence the increase in subscription prices. In the last seven years, Netflix has increased its content budget annually and it is estimated the company has spent $18.5 billion this year only.
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