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Netflix Ups Subscription Prices in Europe

19 Aug, 2015 By: Erik Gruenwedel

As expected, Netflix is quietly increasing monthly fees to new European subscribers to match a price hike initiated in the United States last year. New European subscribers of the two-stream high-definition plan will pay €9.99 ($11) a month, up from €8.99 ($10). Swiss subscription fees will increase to CHF 14.90 ($15.20) from CHF 12.90 ($13.20).

Single-stream standard-definition plans will not be affected. New subs in the U.S. saw monthly fees increase from $7.99 to $8.99.

The price hike comes as Netflix continues to expand globally, including pending service launches in Japan, Italy, Spain and Portugal.

In a reported email to current European subscribers, Netflix said that as a “thank you” it would not alter existing subscription fees for at least a year. The SVOD pioneer said the price hike would help it generate additional programming, including original movies and TV shows.

While Netflix CEO Reed Hastings has hinted at pending price hikes internationally, the move seems logical as the streaming service saw 75% of its new subs in the second quarter come outside the U.S.

“Despite growth in domestic Q2 net additions on a year-over-year basis, an ever-growing international footprint resulted in three-quarters of Netflix's net new paying subscribers in Q2 2015 being derived from markets outside the USA,” Richard Broughton, research director with Ampere Analysis Ltd., said in a July post.

The London-based research firm believes Netflix ended the most recent quarter with 1.9 million subs in Germany, 1 million in Holland and 900,000 in France. Netflix ended the quarter with 23 million subs internationally.

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