Netflix has announced a price increase for some subscribers across the US, UK and France.
In the UK, the price for the basic plan – the lowest tier plan without advertising – will increase from £6.99 to £7.99 starting Wednesday (October 18). This plan is no longer available for returning members after it was axed in July, but those already signed up can keep the subscription as long as they don’t cancel.
The premium plan, which allows users to watch in Ultra HD and download on six supported devices at a time, will increase from £15.99 to £17.99. The price of the basic and premium plans have similarly been hiked in the US ($11.99/$22.99) and France (€10.99/€19.99).
The prices for the ad-supported plan (£4.99) and the standard plan (£10.99) will remain the same across all three regions.
In the company’s 2023 third-quarter shareholder letter, Netflix said: “While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same – a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more.”
The increase comes after Netflix has seen increased subscriber growth following the rollout of measures to crackdown on password sharing between households. Netflix users now have to pay an extra fee to add additional members to their account.
“The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention,” Netflix said. “As a result, we’re revenue positive in every region when accounting for additional spin off accounts and extra members, churn, and changes to our plan mix.”
Netflix reported a 70 per cent increase quarter-over-quarter on the ads plan membership, which contributed to 30 per cent of the total sign ups on average across the countries where the plan is available.
Revenue in the third quarter, meanwhile, totalled $8.5billion, an increase of 8 per cent year-over-year, with 8.76million new subscribers joining the service for a global membership base of 247.15million.
The streaming company also reported about $1billion in “lower-than-planned cash content spend” over the past quarter, due to the SAG-AFTRA and WGA strikes.
In recent months, Netflix has released shows like the final season of Sex Education, One Piece and Black Mirror.
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