Netflix is raising prices for its standard and premium plans
October 29, 2020 at 21:42
The streaming media company is raising the prices on its standard and premium plans for US customers.
Its standard plan is now $14 a month, up $1 a month from last yearIts premium subscription will go up $2 to $18 a month.
The new prices will take effect starting immediately for new members while current members will be notified that their subscription is going up as it rolls out over the next few months.
"We understand people have more entertainment choices than ever and we're committed to delivering an even better experience for our members," a Netflix spokesperson said in a statement.
"We're updating our prices so that we can continue to offer more variety of TV shows and films."
The spokesperson added that Netflix offers "a range of plans so that people can pick a price that works best for their budget."
"The price increase was a matter of when not if," McTernan told CNN Business.
This came after Netflix had a huge 2020 because of people being stuck at home during the coronavirus pandemic.
Netflix was asked about raising prices during its earnings call last week.
Netflix is the king of streaming and the moves it makes, especially in terms of cost to the consumer, reverberates throughout the market.
For example, McTernan noted that Disney's stock had a positive reaction following the announcement of Netflix's pricing going up.
"This will give Disney+ cover to raise prices at some point," he said.Source