Netflix raises rates in the US

Netflix raised the monthly rates for some plans in the US on October 29 (local time). Greg Peters, who is in charge of Netlice’s COO, also suggested a monthly rate increase during the October 2020 financial statements.

The price hike that Netflix implemented on October 29th was that the standard plan’s monthly rate was $13.99 from $12.99, and the premium plan was $17.99 from $15.99. The basic plan’s monthly rate is $8.99 as before.

In the future, new consumers will pay monthly fees after the increase. If you have already subscribed to Netflix, you will be notified 30 days prior to the collection of charges after 2 months of new fee conversion. This is not the first time Netflix has made a price increase. There were two price hikes in Canada in November 2018 and October 2020. It is said that the price hike in the US was previously expected among industry officials. Netflix is also changing pricing plans from country to country, so the price increase in the US cannot affect users in other countries.

The number of video service subscribers is increasing due to the effects of infectious diseases such as Corona 19, but at the same time, competition between services is also fierce. It is estimated that Netflix spent $18.5 billion in content expansion in 2020 alone to attract customers through a variety of in-house content.

Intensifying competition helps improve the content and platform provided by Netflix. However, the high cost required is reflected in the form of an increase in the monthly psoas. At the latest financial statements held in October 2020, Peters COO also hinted at an increase by saying that the company sometimes asks customers to pay more in order to maintain a virtuous cycle of investment and value imagination.

Of course, there is a possibility that the number of users who terminate Netflix by raising the price will increase. However, content fidelity can prevent user churn to some extent, and as a result, it is expected that the profits from the price increase will be exceeded.

Netflix said the monthly fee is updated to continue to provide a wider variety of programs and movies, and that it provides a variety of services so that you can always choose the best price for your budget. Related information can be found here .