Netflix stopped its free trials across all markets earlier this month. Now, the streaming giant is raising prices for its subscribers in the United States. There is no increase in the basic plan which costs $ 9. However, the standard and premium plans will see an increase of $ 1 and $ 2 monthly and will now cost US subscribers $ 14 and $ 18 respectively.
The move comes as Netflix tries to create original content and invest in the content listing and product features. However, rising prices in the US are less likely to impact Indian subscribers, as Netflix introduces price changes on a country-by-country basis, and a change in the US does not influence or indicate a global price change, they have sources told The Verge.
“Prices are being updated so we can continue to offer a greater variety of TV shows and movies. As always we offer a range of plans so people can choose a price that works best for their budget,” a spokesperson said. of Netflix. According to the report, Netflix has increased its annual content budget each year for the past seven years with a 2020 estimate of $ 18.5 billion.
Netflix CEO Reed Hastings told analysts during the company’s second quarter earnings call in July that people may leave Netflix from time to time to subscribe to other streamers. “The goal is to have so many hits that you know when you come to Netflix you can just go from one hit to the next and never have to think about any of these other services,” Hastings said. Netflix also noted that its growth in the third quarter of 2020 slowed due to what it calls a “pull-forward effect” from the first half results.
“Although the course and impact of C-19 remain unpredictable, we are optimistic that we will complete filming of over 150 other productions by the end of the year. For our 2021 list, we continue to predict that the number of Netflix Originals launched on our service will increase year on year in each quarter of 2021 and we are confident that we have an exciting range of programming for our members, particularly relating to other options. of entertainment services, “Netflix noted in its letter to shareholders.
In India, Netflix offers monthly subscriptions starting at Rs 199 for the mobile plan, while the basic plan comes for Rs 499, the standard plan for Rs 649 and the premium plan for Rs 799. Netflix has also introduced a mobile + plan for Rs 349.
Netflix has raised the prices for its standard and premium monthly plans in the United States. However, it is less likely to affect Indian users as a change in the US does not suggest a global change, according to Netflix.
- Netflix is raising prices for its subscribers in the US to $ 14 per month for the standard plan and $ 18 for the premium plan.
- There are no increases to the basic plan for now which costs $ 9.
- Netflix stopped its free trials across all markets earlier this month.