Netflix Raising Prices On Their Standard And Premium Streaming Plans Starting In November
Netflix either sees that people are desperate for more streaming content and knows that they'll pay for it while movie theaters don't have much new to play, or they're not making as much money as they'd like to be, and are going to get what they can from their current subscribers. The streaming service will be raising prices for their standard and premium streaming plans starting in November. The Wrap has the news on Netflix raising prices starting in November. The standard streaming plan, which allows subscribers to watch up to two streams at a time in high-definition quality will now cost $13.99 per month. Meanwhile, the premium streaming plan, which allows subscribers to watch up to four streams at a time (including the ability to stream in 4K when possible) will now cost $17.99 per month. The new pricing goes into effect for current customers on their next billing cycle, and anyone who signs up for Netflix starting today will pay these new prices.
This latest price hike comes after Netflix raised prices last year too. At the time, it was their biggest price hike yet with both the standard and premium streaming plans increasing by $2 each. This time, only the 4K premium streaming plan increased by $2, while the standard plan only increased by $1, so I suppose it could have been slightly worse. Though the rise in prices might result in some canceling their subscription, it certainly helped Netflix's stock rise 5% on the NASDAQ yesterday, and I'm sure that tickled the fancy of some Wall Street bro out there.
The reason for raising prices might be due to the fact that Netflix's subscriber numbers were below expectations for the third quarter. Despite the fact that the coronavirus pandemic is keeping people at home a lot more, Netflix only added 2.2 million new customers in the third quarter, after projecting they'd gain another 2.5 million back in July. Granted, that's after Netflix rounded up a whopping 26 million new subscribers in the first half of the year, so they're not exactly doing poorly.
Perhaps with the streaming competition growing thanks to the arrival of HBO Max and Peacock, some people are being more frugal about which streaming services they stay signed up for. After all, at this point, if you subscribe to all the major streaming services, you're basically paying the same you would if you had a regular cable subscription. But who is crazy enough to do that? It's certainly not me. Nope. I definitely don't pay for all those streaming services and then choose to rewatch The Office.
Not me.