Netflix is phasing in price increases for its standard plan by $1 and its premium plan by $2 for subscribers in the United States.
According to The Verge, new subscribers will pay $14 per month at signup for the standard plan and $18 per month at signup for the premium plan. Existing users, meanwhile, will see the change in future bills.
"As always, we offer a range of plans so that people can pick a price that works best for their budget," a Netflix spokesperson said. They also noted the increase affects U.S. customers only and "does not influence or indicate a global price change," as the company sets rates in each country independently. Netflix last increased U.S. pricing in January 2019, while it raised prices in October on some plans in Canada after its last hike there in November 2018.
Netflix has boosted its programming budget each year since 2013, spending an estimated $18.5 billion in 2020. Netflix Chief Operating Officer and Chief Product Officer Greg Peters said the company will "occasionally go back and ask [customers] to pay a little bit more to keep that virtuous cycle of investment and value creation going."
EMarketer analyst Ross Benes said Netflix offers enough value that it could afford to charge $1 more each month without greatly hurting its subscriber numbers or chasing them to competitors. "Some people might cancel, but I bet it would pay off for them," he said.
Source: The Verge