SALT LAKE CITY — Netflix announced Tuesday it would raise its prices 13 to 18 percent for new users, which would be the largest hike in the company’s history.
The jump will impact close to 58 million subscribers.
The plan will immediately affect all new Netflix subscribers. Existing customers will see the change over the next three months, according to The Associated Press.
Here’s a breakdown:
- The most popular plan, which offers high-definition streaming on two devices at the same time, will jump from $11 to $13.
- The basic plan was $8. That will increase to $9 per month.
- The premium plan, which offers ultra-high-definition streaming, will jump from $14 to $16.
Flashback: Netflix previously raised prices in October 2017, which I wrote about for the Deseret News. At the time, experts said that demand for Netflix remained high, which is why, they said, there would be more price changes.
"Netflix has a lot of headroom for price increases," said Michael Greeson, president and principal analyst for research firm The Diffusion Group, to USA Today. "The service offers tremendous value even at the higher, but still very low, monthly costs."
Bigger picture: Netflix, Disney and AMC are all raising their prices “because they can,” according to the Motley Fool.
Let’s look at this.2 comments on this story
- Netflix’s price increase represented the largest hike in company history.
- Disney boosted Disneyland ticket and pass prices last week, which is something I wrote about for the Deseret News. Walt Disney World will likely follow suit.
- AMC raised its prices for the AMC Stubs A-List multiplex subscription plan — a competitor to MoviePass that basically overtook MoviePass — with a 10 to 20 percent increase.
- Motley Fool offers a reason for these increases: “The economy may be giving off some mixed signals when it comes to its sustainable health, but Netflix, Disney, and AMC aren't afraid to push through higher prices. There's a perk to being the top dog, and when you're the world's leading premium streaming service, theme park operator, or multiplex ticket taker, you'll stretch your pricing elasticity until your customers buckle.”