Unexpected price hikes are no fun.
What you need to know
- Netflix raised prices for new subscribers on Friday.
- Current subscribers will also be affected by price changes “over the next few weeks.”
- Depending on the plan, plans go up by $1 to $2 per month.
Netflix raised prices on its plans for U.S. and Canadian subscribers on Friday, a move that appeared to come out of nowhere.
In a Reuters report, the company raised the price from $1 to $2 a month, depending on which plan you use. The Basic plan is now priced at $9.99, and the Standard and Premium plans are priced at $15.49 and $19.99 per month, respectively. In Canada, the prices are CAD 9.99, CAD 16.49 and CAD 20.99.
Netflix did not immediately respond to our request for comment on the price increase. However, a spokesperson explained,
We understand that people have more entertainment options than ever before, and we’re committed to providing a better experience for our members. We’re updating our prices so we can continue to offer a variety of quality entertainment options. As always, we offer a range of plans so members can choose a price that fits their budget.
While the price increase is understandable given the amount spent on licensing and producing original content, it’s a bit odd that it wasn’t officially announced before the price increase.
One of Netflix’s biggest rivals, Hulu, typically gives customers a month’s notice before pricing changes take effect. Plus, this brings the Netflix Basic plan in line with HBO Max’s ad-supported plan, while making it more expensive than Hulu or Disney+.
While the increase may deter some viewers, others may not mind paying more for access to content like The Squid Game, Don’t Look Up, and Arcane.
T-Mobile subscribers don’t have to worry either — the nation’s best wireless carrier says on its news site that it will continue to service your subscription.
With the streaming platform’s earnings call scheduled for January 20, we should learn more about the company’s motivations.