Netflix announced it will raise the price of its standard and premium plans for US subscribers, marking the first cost increase from the streaming service in a year-and-a-half. However, the price hike will not affect the basic plan, the cheapest of the three offerings.
The standard plan, which grants subscribers the ability to stream on two screens simultaneously and access to Netflix’s HD library, will increase from $13 per month to $14 per month. The cost of the premium plan will also increase by $2 to $18 per month. As the most expensive offering from Netflix, the premium plan allows up to four simultaneous streams and also gives users access to ultra HD programming. The basic plan, which excludes HD programming and only allows one stream, will remain at $9 per month.
Per The Hollywood Reporter, Netflix is betting that users will continue paying for Netflix even as more streaming services enter the market. “We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a Netflix spokeswoman said in a statement. “We’re updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall line up. As always we offer a range of plans so that people can pick a price that works best for their budget.” The cost of Netflix’s standard and premium plans has increased by $3 and $4, respectively, in less than two years, with the last US price hike having taken place in May 2019.
Investors were reportedly pleased with the news of the price increases. The streaming service had recently fallen short of its subscriber estimates and overall earnings goal for the third quarter of 2020, resulting in a substantial drop in stock prices. Over the summer, the average revenue per subscriber in the US and Canada was $13.40.
The price increases could be a risky gamble considering Disney+, Apple TV+, and Peacock are all available at a lower cost than Netflix’s standard plan. At this time, only HBO Max charges more than the standard Netflix plan at $15 per month.
AT&T recently touted a doubling of HBO Max activations during the third quarter of 2020. However, it was not enough to offset the losses facing WarnerMedia’s Warner Bros. division amid the COVID-19 pandemic.
Source: The Hollywood Reporter
![\"IT電腦補習](\"http://itteacheritfreelance.hk/test/wordpress/wp-content/uploads/2016/05/logo2-2.png\"){kind=logo}
www.itsec.hk
www.itsec.vip
www.itseceu.uk
Leave a Reply