Netflix has raised the price of its standard subscription by a dollar, to $9.99 USD per month. Netflix says the price rise is need so the streaming giant can "continue adding more TV shows and movies including many Netflix original titles".
This is the second time in two years that prices have risen for Netflix's standard plan, which allows for two simultaneous streams - both price rises were by $1. Netflix's other plans, including a basic single stream only plan and a family plan that permits four simultaneous streams, will remain at their current prices ($7.99 and $11.99 respectively).
Existing subscribers will be spared the higher rate, at least for a while. Those that started their Netflix adventure by paying the original $7.99 rate will still pay the same for another year (thanks to the two year price guarantee that Netflix introduced for existing subscribers when they raised prices last year), while those that signed up for $8.99 last year will get this price locked in for another year.
Netflix CEO, in a July earnings call, hinted at on-going price increases for Netflix as the streaming service expands its content library.
"Over the last year, we’ve raised [average sales price] about 5 percent. We’d like to keep that moving. We’re going to continue to have incentives for people to move up in the plans as suits their usage pattern, but we want to take it very slow. Things are going well, there’s no reason to be disruptive," said Hastings.
"Over the next decade, I think we will be able to have more and more content and add more value, and then to be able to price that appropriately."
