Netflix Announces Price Hike on Premium Plan in the US
In a move that may not sit well with subscribers, Netflix has decided to raise its prices once again. This price hike is expected to impact its premium ad-free plan in the United States. The streaming giant revealed this change in its third-quarter earnings report.
Starting Wednesday, the premium plan’s cost will increase by $3 per month, bringing it to $22.99 in the United States. Additionally, the one-stream basic plan will also see a bump in price to $11.99 in the United States. However, all other plans, including the entry-level $6.99-a-month ad-supported tier, will retain their current monthly fees.
This price adjustment doesn’t solely affect US customers. Netflix has announced similar price increases for select subscription tiers in the United Kingdom and France.
The streaming service reported strong growth in average paid memberships, with a 9% year-over-year increase. Netflix added a remarkable 8.8 million subscribers during the last quarter, marking a significant increase compared to the 2.4 million added in the third quarter of the previous year. In total, Netflix’s third-quarter earnings revealed 247 million paid global subscribers.
One factor contributing to this robust subscriber growth was Netflix’s ongoing efforts to combat password sharing. The company disclosed that it has fully rolled out its “paid sharing” program across all regions where it operates. Surprisingly, fewer customers than expected cancelled their memberships due to these measures. Instead, many customers who had previously relied on borrowed passwords from others have decided to become full-paying subscribers, according to Netflix.
