Image: Netflix

Those of you who have been considering canceling your Netflix subscriptions have just received a new incentive to do so, as the world’s biggest streamer has decided to raise prices once again.

According to a support document on Netflix’s official website, the Standard plan now costs $13.99, while the Premium plan costs $17.99. These plans used to cost $13 and $16, respectively.

Is a $1 or $2 price increase a big deal? Maybe not, but it’s an awkward follow-up to the recent news that Netflix had missed its Q3 subscriber forecast by a significant degree (2.2 million vs. 2.5 million).

Wall Street analyst Alex Giaimo (via Deadline) actually predicted back in September that Netflix would be raising prices. The discussions allegedly began in Q2, which is an interesting coincidence, being that coronavirus took off during that time frame, fueling a ton of new subscriptions for the streamer.

Giaimo noted that an increase of $1 to $2 a month in North America or Europe could generate $500 million to $1 billion in fiscal 2021 revenue for Netflix. The increase in EMEA (Europe, Middle East and Africa) regions could also add “an incremental $700 million to 2021 revenue.”

Netflix previously raised prices in January 2019, with the Basic plan costing $9 (up from $8), Standard plan costing $13 (up from $11), and Premium plan costing $16 ($14).

Despite Netflix’s outstanding debts, we’re guessing that most of the additional money will be spent on new content. With more and more competitors (e.g., Disney+) entering the scene, it’s becoming increasingly unclear how the streamer ever intends to pay things off.

Join the Conversation

11 Comments

  1. I don’t understand how these companies think like this.

    Didn’t meet a sales quota or new subscriber mark? Well let’s raise prices on those who are already our customers.

    You’d think they’d see that people aren’t willing to buy the service at the current price and they’d LOWER the price as an incentive for new subscribers to join while making your current subscribers extra happy.

  2. I don’t understand how these companies think like this.

    Didn’t meet a sales quota or new subscriber mark? Well let’s raise prices on those who are already our customers.

    You’d think they’d see that people aren’t willing to buy the service at the current price and they’d LOWER the price as an incentive for new subscribers to join while making your current subscribers extra happy.

    Hey, stop making sense. The internet has no place for that.

  3. I don’t understand how these companies think like this.

    Didn’t meet a sales quota or new subscriber mark? Well let’s raise prices on those who are already our customers.

    You’d think they’d see that people aren’t willing to buy the service at the current price and they’d LOWER the price as an incentive for new subscribers to join while making your current subscribers extra happy.

    They are not going to drop current subscibers tariffs, but they could give new ones a better rate for joining up like standard plan 10$ for the first year iso 13$ iso raising everyones prices.

  4. They are not going to drop current subscibers tariffs, but they could give new ones a better rate for joining up like standard plan 10$ for the first year iso 13$ iso raising everyones prices.

    That’s exactly what Cable Co. do and look how well that’s been working out for them.

  5. That’s exactly what Cable Co. do and look how well that’s been working out for them.

    So that is a little different. Cable/internet companies can (and do!) raise rates and your only recourse is to threaten to cancel. If you have no competition in your area, they might laugh at you, or they might actually lower rates a little (short term) to keep a customer.

    Netflix, OTOH, gives zero f*cks. Their attitude is, if you want it, you’re gonna pay for it. And I will keep paying for it, because I like the service and the content. An extra buck or two a month isn’t going to kill my budget. But with SO MANY other streaming services popping up this year, logic might dictate this isn’t the best move. But whoever said Reed Hastings was logical? (clue = no one)

  6. So that is a little different. Cable/internet companies can (and do!) raise rates and your only recourse is to threaten to cancel. If you have no competition in your area, they might laugh at you, or they might actually lower rates a little (short term) to keep a customer.

    Netflix, OTOH, gives zero f*cks. Their attitude is, if you want it, you’re gonna pay for it. And I will keep paying for it, because I like the service and the content. An extra buck or two a month isn’t going to kill my budget. But with SO MANY other streaming services popping up this year, logic might dictate this isn’t the best move. But whoever said Reed Hastings was logical? (clue = no one)

    Partially true. While Netflix does have competitors in Streaming they do have exclusive content. This can be similar to the "your only option" with a Cable Company in your area. Even then, Satellite is an alternative. There are options. Just depends on whether you want to or not.

  7. I’m starting to find netflix original content pretty lackluster in recent years, but here in Belgium there are not that many alternatives worth a ****.

    I found those marvel series entertaining enough also house of cards and oitnb were a good watch, best one they still have atm imo is better call Saul.

  8. If they want to up subscriber counts make it so multiple households can’t use the same account long term.

    "We noticed that IP xxx.xxx.xxx.xxx has been watching netflix at the same time as IP XXX.XXX.XXX.XX1. While we understand travelling customers will want to maintain and use netflix on their mobile devices and such. We are limiting the number of households that can use Netflix at the same time. As such we are shutting down non primary account streams, or downgrading their service to 320p. Phones and mobile devices will be just fine. Others will need to call. We only do this if we notice more than 10 instances a month for more than 3 months in a row. If your friends want Netflix we suggest you send them this friends and family link. For every person that subscribes you get a free month. And their first month is free as well.

    Thank you for being a Netflix customer"

    LOOK MAGICALLY SUBSCRIBER ACCOUNTS WOULD GO UP!!! Because friends that were borrowing would feel pressure to sub just to get their friend a free month. AND they would be more likely to keep the service they like anyway.

  9. I almost canceled when they went up a year ago to $12 but the wife actually watches it pretty regular. YouTube is about all I watch these days and it’s free!
Leave a comment