As we reported two weeks ago, Netflix is putting its prices up – and the new pricing has now taken effect. For customers in the UK that means £2 more per month for Premium and £1 per month more for the Basic plan.
There are now three plans available to new subscribers – Basic is no longer an option for new sign-ups – and they are:
Standard with adverts: £4.99 per month ($7 in the US)
Standard: £10.99 per month ($12 in the US)
Premium: £17.99 per month ($23 in the US)
As before, there are differences in features and quality between different plans. Standard and Standard with adverse limit you to Full HD and only enable simultaneous streaming to 2 devices; Standard with ads doesn't enable you to download for offline viewing or add one extra member who doesn't live under the same roof. That extra viewer is an extra £4.99 per month ($7.99 in the US).
Premium increases the number of simultaneous devices to four, ups the download-to-devices from two to six and enables you to add two extra members to the same subscription for an extra £4.99 per person per month. Picture quality is 4K UHD where appropriate and spatial audio is also available.
Why is Netflix putting its prices up?
Because it wants more money. Netflix added more customers in the last financial quarter than it expected – 8.8m compared to a predicted 6m – and boosted its profits by 20% to approximately £1.4bn on revenues of £7bn. So this clearly isn't an Elon Musk-style financial panic; Netflix doesn't desperately need money.
More price hikes may be coming. According to the Hollywood Reporter, during the latest earnings interview co-CEO Greg Peters "would not comment on when price increases on the other plans may happen, but said the timing will fit in to the company’s 'philosophy' of 'occasionally' raising prices to continue delivering better content."
Peters also said that the company was pleased with its ongoing crackdown on account sharing. "The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention," he told reporters. The crackdown now applies to around 80% of Netflix's customer base and will continue to roll out in other territories.