Netflix made headlines by announcing yet another round of price increases for its streaming service on Oct. 18. This change comes as part of the company’s ongoing efforts to deliver more value to its members. The adjustments affect two subscription tiers.
The basic plan, previously priced at $9.99 per month, has been raised to $11.99. The premium plan, which used to cost $19.99 monthly, now comes in at $22.99. The Netflix plan with ads, priced at $6.99 per month, and the standard tier, at $15.49 per month, with no ads but lower resolution, will remain unchanged.
This is not the first time Netflix has adjusted its pricing structure. In January 2022, they increased prices and stopped offering the ad-free basic plan to new and existing users, compelling them to pay more if they wished to avoid ads.
“I honestly had no idea that Netflix was raising their prices,” said Reagan Lippold, a senior psychology major. “If this means they’ll add more interesting things to watch, then I don’t really mind paying a little bit more.”
Netflix’s official statement to shareholders justified these price hikes by emphasizing the added value to its members. They also highlighted that the most basic plan, at $6.99 per month, is less than the cost of a single movie ticket nowadays and remains competitively priced in comparison to other streaming services.
The timing of this price increase coincided with the resolution of a significant labor dispute. In September, the Writers Guild of America successfully negotiated terms with Netflix, ensuring access to streaming data and higher minimum payments. This newfound stability may have contributed to Netflix’s ability to gain 8.76 million new subscribers over the past few months, increasing their global streaming base to 247.15 million users.
“I won’t cancel my subscription because I like the way Netflix is organized, and I’ve already used it for so long,” said Gia Lasher, a junior biology major. “However, I didn’t know the costs were increasing, but I find it very inconvenient because Netflix has taken off a lot of popular shows and movies and won’t even show things that they know a lot of people will want to see.”
Netflix also recently cracked down on the issue of password sharing. To prevent this practice, they implemented location checks on subscribed devices. If the system detects a different location than the address noted during a subscription, users are prompted to upgrade their account for multiple devices or locations. This move aims to maintain the integrity of each subscription tier.
As part of their ongoing strategy to enhance the user experience, Netflix plans to introduce content downloads for their ad-supported tier in the coming months. This will allow users to download movies and shows for offline viewing — even when they do not have access to Wi-Fi or mobile data.
This price increase at Netflix is not an isolated event. Other major streaming services, such as Hulu, Disney+ and Apple TV+ have also adjusted their prices at least once this year. These changes are often attributed to the ever-evolving landscape of content creation, market competition and the need to respond to local market changes, such as fluctuations in taxes and inflation.
“With Netflix increasing their cost, it influences me to look into other streaming services,” said Kendall Merritt, a first-year marketing major. “If the cost were the same, it wouldn’t be a priority to compare other companies. However, with costs increasing everywhere you can’t afford to spend a fortune on streaming services.”
Netflix’s latest price increase, combined with its ongoing efforts to enhance the user experience and adapt to market changes, reflects the changing dynamics of the streaming industry. Users can expect more content and features in the future, even as subscription costs evolve.
