Netflix’s subscription prices are on the rise once again, marking a departure from the days when enjoying this streaming service cost no more than a couple of cups of coffee each month. Now, the cost is equivalent to several cups and may even climb to match the expense of a high-end meal in the future.
The latest price adjustments were implemented on a Wednesday. Subscribers on the ad-free Basic Plan, who were fortunate enough to retain their grandfathered status, witnessed an increase from $9.99 per month to $11.99. This particular Netflix plan is no longer accessible to new members.
Meanwhile, the Premium Plan, which offers 4K streaming on multiple devices, has seen its price rise from $19.99 to $22.99. On the other hand, the two other plans, the entry-level ad-supported plan and the Standard plan, remain unchanged at $6.99 and $15.49, respectively.
In their Q3 release, Netflix defended these adjustments, asserting, “Our starting price is extremely competitive with other streamers, and at $6.99 per month in the U.S., for example, it’s much less than the average price of a single movie ticket.” This statement does hold true. While the Premium Plan may appear costly, it offers significant value, granting access to a vast library of content at your fingertips, all in glorious 4K, for $22.99.
Netflix has also introduced an ad-supported tier, providing an option for cost-conscious consumers to sign up for the $6.99 plan. This essentially merges the on-demand and traditional TV models. It’s a development that could have been foreseen, as Netflix and other streaming platforms could not indefinitely rely solely on monthly subscribers. Eventually, they had to return to the most lucrative income source available—sponsorships and advertisements.
“Netflix transformed the entire landscape of media consumption, but history demonstrates that tried-and-true methods are often the most reliable,” commented Andrew Tropeano, a technology expert with NWT Media. “There’s no denying that sponsorships or advertisements offer the best means to monetize audio-visual content.”
The previous Netflix price hike occurred in March 2022, and while it may be reasonable, consumers hope it doesn’t become a biennial habit. Persistent increases could lead to pricing out the average consumer.
