Netflix announced price increases for most of its U.S. plans, including the standard plan without commercials, which will now be $17.99 per month. The cheaper, ad-supported plan will increase to $7.99, and the premium plan will go up to $24.99. The company reported raising prices in Canada, Portugal, and Argentina as well. This trend of price hikes has been seen across major streaming services in recent years as they look to reach profitability. Netflix’s co-CEO Ted Sarandos emphasized the importance of having engaging content to justify price increases.
The company recently discontinued its cheapest ad-free option in favor of a cheaper, ad-supported plan to attract more subscribers. Netflix has also been cracking down on password sharing and offering subscribers the option to add “extra members” to their accounts for a fee. The cost of extra members on standard plans without commercials will now be $8.99.
Despite these changes, Netflix reported adding a record 19 million paid memberships in the fourth quarter, surpassing 300 million subscribers. The company has upcoming series and movies planned for the future to continue attracting and retaining customers. The recent price increases in international markets went smoothly, according to co-CEO Greg Peters. Overall, Netflix’s strategy of raising prices, offering different plan options, and cracking down on password sharing seems to be paying off as they continue to grow their subscriber base.
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