The US-based streaming company Netflix has said that it would be increasing the prices of all its plan.
Already, it has increased the price of its plans in the US and Canada by $1 to $2 per month.
Explaining the reason, Netflix says it is to help pay for new programming to compete in the streaming TV market.
Below are some of the price change identified by Netflix.
The standard price is from $14 to $15.50 per month.
For the one for the premium, the plan would rise to $20 from $18.
Then the HD plan will be $10 from $9 approximately.
Netflix says that the change would go into effect immediately for users who just joined.
And it would roll the development gradually for existing users.
However, Netflix has also promised to email users 30 days before the new price becomes effective.
With this, Netflix has promised to provide a better experience.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” says Netflix spokesman.
Also, the company said that with the price increase, it would continue to offer more entertainment options.
“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options.
As always, we offer a range of plans so members can pick a price that works for their budget,”
Interestingly, the price hike usually arrives when the platform goes through a challenging period.
And in the past, this has always worked as the increase doesn’t stop the number of people joining the platform.
Infact more people have joined Netflix with the increase, making it okay.
And this goes to show that Netflix has pricing power and is on top of its game.
Also, Netflix has always been increasing its price steadily.
From 2020 to 2011, Netflix had added a $1 to $2 increase.
Although, other serious competitors have also been pouring finances into new programmes to up their game in the industry.
What we think; the increase might apply to more countries
As Netflix has raised its plan price for its base, it might extend this to other countries.
This is because it is common among companies to launch an update where they are based before considering other countries.
They would introduce an update or feature and see the result before extending it to others.
And this might be what might be happening.
Although, a US spokesman had said that “in the US does not influence or indicate a global price change”.