In the latest note to shareholders, Netflix announced its new and updated pricing for the United States, seeing a new price hike that is effective this October, and will set up users to as much as $23 per month on its most expensive tier. However, that is not the only increase for the company as the price of its basic also sees a slight increase that will ask for more from its users.
Various price hikes were observed from Netflix in the past several months, with the company rolling it out now after delaying this from previous announcements.
Netflix Price Hike: $23/month for its Premium Tier
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Netflix presented its Third Quarter earnings report for 2023 earlier today, and apart from its significant achievements in growing the business, there is also a price increase coming for the United States, the United Kingdom, and France. As per the letter to shareholders, Netflix detailed that its Premium tier, its most expensive subscription, will now be available for $23 per month.
This features the ad-free experience, availability to stream it for up to five devices, five user profiles, 4K streaming for applicable titles, and more. The $23 Premium Tier is $3 more expensive than its last pricing which it last updated in 2022.
However, this is not the only increase for the platform as the ad-supported tier is also seeing a hike, now available for $6.99 per month.
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Netflix's Pricing is 'Competitive' in the Market
Netflix said, "Our starting price is extremely competitive with other streamers, and at $6.99 per month in the US, for example, it's much less than the average price of a single movie ticket."
Only two of Netflix's current tiers remain unaffected by this hike, namely its ad-free Basic, and the ad-free Standard which are at $11.99 and $15.49 per month, respectively.
Netflix's Price Hike and What it Offers
Earlier this month, various reports heard through a grapevine via insiders that Netflix was planning to increase its prices for the United States and Canada region, upping its Premium, the most expensive tier, from its offers. However, the company saw a delay for this because of the WGA- SAG AFTRA strikes and reports claim that it would effect these hikes after striking a deal.
Now that the WGA and SAG-AFTRA strikes are seeing agreements from the organizations and concerned parties, here comes the rush of new prices from the streaming platform.
It had an earlier claim that the US would not see any price increases for at least a year, with the last one being from January 2022, with users having mixed perceptions of these changes.
Two tiers of Netflix's streaming subscription see price increases including the ad-free Basic and the ad-free Premium, with the other two, the ad-supported (lowest tier) and the Standard retaining its monthly costs. However, the United States is not the only country to see this Netflix price hike, as two other countries would be part of the change, including the UK and France.
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