The price of Netflix’s standard HD subscription drops from $ 12.99 per month to $ 13.99 per month, while the price of its premium 4K subscription drops from $ 15.99 to $ 17.99, the company said. company Thursday. The streaming service’s $ 8.99 base plan, which does not include HD streaming, is unaffected by the changes.
The latest price increases for the streaming service date back to January 2019.
The price changes took effect Thursday for new subscribers. Current Netflix customers will be notified via email and will also receive an in-app notification 30 days prior to their price increase. The schedule will be based on the specific subscriber’s billing cycle and will be rolled out over the next two months.
“We understand that people have more entertainment choices than ever before and we are committed to providing an even better experience for our members,” a Netflix spokesperson said in a statement. “We are updating our prices so that we can continue to offer a wider variety of TV shows and movies – in addition to our great fall programming. As always, we have a range of packages available so people can choose the price that best suits their budget. “
Wall Street liked the news; Netflix shares rose about 5% within hours of the news of the price hike. The price changes were announced days after Netflix reported its third quarter results, where the company narrowly missed its projection for new subscribers. The mixed third quarter results aside, Netflix has done better than many of its streaming competitors since the pandemic began to disrupt the entertainment industry and the streaming service has seen a sharp increase in the number of streaming services. subscribers earlier in the year.
Time will tell how the streaming service’s price hikes will impact its subscriber base. The streaming service blamed its price increases in 2019 on slower membership growth in the United States during its third quarter 2019 earnings report.
A standard Netflix subscription costs more than standard subscriptions for most competing streaming services in the market, the notable exception being WarnerMedia’s HBO Max, which launched in May, costs $ 14.99 per month and has suffered. slow adoption by consumers.