Netflix Is Increasing Prices For All Packages In USA

Netflix Is Increasing Prices

Netflix Is Increasing Prices
Netflix Is Increasing Prices

Despite increased competition from Amazon Prime, Disney Plus, and HBO Max, Netflix remains one of the most popular video streaming services globally. Netflix's subscriber growth slowed because of the increase in multimedia consumption during the COVID-19 epidemic but rebounded with the help of the global sensation 'Squid Game.' The video streaming service is raising its prices.

New Netflix USA users will have to pay $9.99 for the basic plan starting January 15th, up from $8.99 before. Users will also have to pay $15.49 for HD, up from $13.99, and $19.99 for the top-tier 4K plan, up from $17.99.

Existing Netflix members will also see a price increase in the coming weeks. Netflix rates are changing at the same time around the world, with the ordinary plan now costing CAD 16.49 (up from CAD 14.99) in Canada.

In a statement to Reuters, a Netflix spokeswoman said,

"We recognise that consumers have more entertainment options than ever before, and we're dedicated to giving our members an even better experience. We're changing our prices, so we can keep providing a diverse range of high-quality entertainment alternatives. We continue to offer various programmes so that members can choose a price that fits their budget."

According to Evercore ISI analyst Mark Mahaney, despite rising costs, Netflix has increased the number of its customers over time, indicating that members are prepared to tolerate higher prices. "This is evidence that Netflix has pricing power," Mahaney continued.

Netflix has consistently raised its prices over time. The basic package was $7.99 in 2014 and increased to $8.99 in 2019. While the regular HD package cost $7.99 when it was first introduced in 2011, it grew to $8.99 in 2019, $9.99 in 2015, and $13.99 in 2020. In 2013, the 4K plan costs $11.99, and by 2020, it will cost $17.99.