Netflix announced price increases on Thursday for both its premium and standard subscription plans. New account introductory base prices will remain at $8.99 for basic services. Premium subscriptions will increase to $17.99 from $15.99 monthly and standard plans will go up to $13.99 from $12.99 per month. Netflix shares jumped to 4% upon the price increase news before dropping down later in the day.
Current customers will see the price increases reflected on their subscription billing over the next couple of months, with a 30-day notice from when the changes become effective. This is the first time the streaming entertainment services company has raised its prices since January of 2019.
Chief Operating Officer Greg Peters justified the increases by saying if the company provides more value and original content for its customers, he feels it’s appropriate to ask those customers “to pay a little bit more.”
Standard plans include viewer sharing on two devices. The premium plan offers up to four devices with high-definition resolution. The basic plan for a single viewer is equivalent to the quality of a regular DVD.
Ann Sullivan is a contributing staff writer covering national and world news topics. She brings dedicated experience having written international and domestic news, blogs, and web content for over 20 years. She’s also a published poet and graphic designer with degrees in Business and Graphic Communications and has been a music distributor, music industry sponsorship sales director and band manager.