Watching The Witcher, Stranger Things 4, and the next Squid game on Netflix will soon cost you more — at least if you live in the US or Canada.
Netflix confirmed to Nerdshala that the streaming giant is set to raise rates on most North American subscribers starting today (Friday, January 14, 2022).
Price increases range from $1 to $2 across Netflix’s streaming plan options.
Individual customers who don’t get HD content on the Basic plan will have to pay $9.99 (up from $8.99) per month. This means the company is now a penny away from its baseline service costing double digits ($10 or more). In Canada, however, the basic tier remains at $9.99 CAD.
A Standard plan, which allows two simultaneous HD streams, starts at an odd number of $15.49 per month ($16.49 CAD), up from $13.99.
Premium, which allows for up to four screens at once for Ultra HD 4K television streaming, increases from $17.99 to $19.99 per month ($20.99 CAD).
Netflix told Nerdshala, “We understand that people have more entertainment options than ever before and we are committed to providing an even better experience for our members. We are updating our prices so that we can choose between different types of entertainment and entertainment.” To continue to offer quality entertainment options. As always, we offer a variety of plans so that members can choose the price that best suits their budget.”
For new customers, these tiered prices are effective immediately. Existing customers will see an increase in the coming weeks, once notified via email. Simply put, your next bill will reflect a monthly increase.
This is the second time in two years that Netflix has raised subscription prices.
Why is Netflix doing this?
Netflix’s decision shouldn’t be a surprise. It is facing new and growing competition from Amazxin Video, Apple and the growing Disney+, which has reached 118M subscribers just two years after its launch, according to Statistica. Netflix is still the leader with 214M subscribers.
Staying ahead of that competition means fresh series, new movies and original content concepts. All of that costs money – billions. In 2021, Netflix reportedly spent $17 billion on content. This year it could cost more than that.
That money comes, in part, from membership fees. Now those fees are increasing to support Netflix in its quest to remain number one.
What can American consumers do to manage costs? They may, say, go from premium to standard, or even consider the $9.99 no HD plan if they watch all of their Netflix on a small smartphone screen.
The other option is switching to Disney+, which costs just $7.99 per month, or AppleTV, a budget-friendly $4.99 per month. Just remember, those streaming platforms don’t have The Witcher, Stranger Things, or most Disney, Marvel, and Star Wars franchise movies.