One of the largest online streaming platforms ‘Netflix’ is again raising subscription prices. In the third-quarter earnings report of the company, the premium ad-free plan in the United States is going to increase by $3 per month to $22.99.
The prices will not only increase in the United States but also in France and the United Kingdom.
Netflix price hike plans
The new subscription plan would increase the price of its Basic plan from $9.99 to $11.99 per month, and the price of its Premium plan from $19.99 to $22.99 per month. The price of Netflix’s $6.99 ad-supported plan and $15.49 Standard tier will remain the same monthly cost with immediate effect.
The password-sharing strategy of this streaming platform has played an essential role in adding on large number of subscribers making it one of the largest online streaming platforms. People now prefer Netflix and chill, instead of going to the cinema houses to watch movies.
Now major sources are saying that the company is going to end the free password-sharing strategy and make it paid. Presently many customers who previously borrowed passwords from others are converting into full paying subscribers.
Password-sharing of the online streaming account between people makes it more affordable and feasible amongst the general population. The profitability of this streaming platform has attracted investors making them invest more in it.
The company pushing its lower-priced ad tier, in which it hides some of the cost by keeping prices low for consumers but charging more to advertisers on advertisements over time.
Netflix is rapidly growing in both quality and quantity. Recent reports showed that the stock of the company has jumped by about 12% in after-hours trading.
Conclusion
Looking at the graph of online streaming platforms, Netflix has gained much attention and audience base compared to other platforms like Disney+, HBO Max, and Amazon Prime Video.
The price hike move is a positive step that will ultimately keep on adding subscribers. Reports depicted that merely a few percent of customers have canceled their memberships as a result of the password-sharing crackdown.
Similarly, a price hike might also impact the company less only, rest time will tell how the graph grows in terms of subscribers and value. This is a competitive development for Netflix.
