A new Netflix price increase is inbound despite the service adding 8.76M new subscribers in the latest quarter.
Following a growing crackdown on password sharing amongst its users, Netflix saw a growth of 8.76M subscribers this quarter, bringing its global tally to 247.2M subscribers. But it seems that Netflix needs to continue boosting its bottom line.
The streaming company is increasing its basic plan – which is no longer available to new customers – from $9.99 to $11.99. The premium plan will be increasing from $19.99 to $22.99. The ad-supported plan will remain at $6.99, and the standard plan will hold steady at $15.49.
In the UK, the basic plan will increase to £7.99, and the standard plan will increase to £17.99. In France, the basic plan will grow to €10.99, and the standard plan will hit €19.99.
“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” the company said in its third-quarter shareholder letter.
Rumors had been circulating that Netflix was preparing for a price increase, but most analysts believed the company would hold off until after the end of the SAG-AFTRA strike. Talks between the actors’ union and the AMPTP broke down recently, and it’s unclear when either side will be willing to return to the bargaining table.
Netflix has made it clear that the unchanged plans could still see price increases at some point in the future.