March 20 2018

Netflix To Raise Prices By A Dollar For Most Popular Subscription Plan

March 20 2018, 11:27 | Lynn Mack

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The price increases take effect over the next several months, Netflix says, with all subscribers will be notified at least 30 days in advance, based on their billing cycle.

It's interesting to also note that Disney will be removing their content from the streaming service in 2018, perhaps they're trying to make some more money while they can.

Want to watch the premieres of Stranger Things, Longmire, and other popular shows on Netflix in the months to come? This latest price increase was inevitable, though, and obviously doesn't close the door to future hikes as well.

It is the first price hike from Netflix in two years.

With the price increases, Greenfield expects Netflix's global subscriber growth to slow "modestly" in 2018 (with 20.2 million net new subs vs. 20.9 million projected for 2017) and then re-accelerate in 2019 to 21.1 million net adds. The highest-tier option, which gets you features like 4K video and four simultaneous streams, will go up from $11.99 to $13.99.

Netflix Inc's USA business announced the first rises in monthly fees in two years on Thursday, hiking costs for two of its three main subscription plans as it spends heavily on its own original content.

"We believe that Netflix's pricing power has increased materially over the past few years as their content slate and technology have improved", RBC analyst Mark Mahaney writes.

The report says that the price increases are only happening in the USA and that the new rates will take effect in November.

Netflix will begin emailing subscribers of affected plans on October 19, allowing them 30 days to opt-in for the higher rates, switch to a cheaper plan or cancel their subscription. The plan that limits subscribers to one screen at a time with regular definition viewing remains $7.99 a month.

Are the Netflix subscription rates getting too high? The company rebounded strongly, though, propelling its stock from a split-adjusted low of $7.54 in 2012 to $194.39 Thursday after investors reacted positively to the higher prices, driving up the shares by 5 percent.

Since then, however, Netflix has continued to add large amounts of new subscribers both in the US and internationally.

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