Netflix Hikes U.S. Subscription Prices5 Oct, 2017 By: Erik Gruenwedel
Netflix Oct. 5 quietly raised the price of its standard and premium subscription prices 10% and 17%, respectively.
The standard plan that enables HD streaming on two screens simultaneously will go from $9.99 to $10.99 per month, while the premium plan that includes 4K UHD content and four screens goes from $11.99 to $13.99 per month.
The new pricing, which mirrors similar price hikes in Canada last month, goes into effect Nov. 4 affecting new and existing subs. The basic $7.99 plan, which excludes high-definition, Ultra HD and is limited to one screen, remains the same.
Price hikes remain a sensitive issue to Netflix. The service in 2011 enacted a 60% price hike on its popular hybrid streaming/by-mail disc rental plan, in addition to an aborted spinoff of the disc business. The sudden actions resulted in an exodus of nearly 1 million subs, widespread media backlash and freefalling stock valuation.
Co-founder Reed Hastings, who announced the changes at the time via social media from his home, later admitted management missteps.
“I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices,” Hastings said in a subsequent email and blog post. “It wouldn’t have changed the price increase, but it would have been the right thing to do.”
Netflix last raised prices two years ago, when the standard plan went from $7.99 to $9.99. The SVOD pioneer ended its most-recent fiscal period with 52 million domestic subs.