Netflix is raising its prices again, and this time it's the biggest price hike in Netflix's history. Netflix hasn't officially explained its reasons for raising prices, but the streaming service produces more original content than ever, and that isn't cheap.
Netflix Raises Prices to Pay for Change
Netflix has evolved massively over the years. It once focused on sending DVDs through the mail, but now that's a small part of its business. It has also switched from delivering old content for people to rewatch to delivering new content exclusive to Netflix.
To deliver these changes Netflix has had to raise its prices regularly. Its most recent price hike was in 2017, when the Standard and Premium plans both became more expensive. Now, all three of Netflix's subscription plans are going up in price.
How Much Is Netflix Raising Prices By?
According to the Associated Press, Netflix is raising its prices by between 13 percent and 18 percent, depending on which subscription plan you're on. This represents the biggest price increase Netflix has enacted since launching its streaming service.
The Basic plan (SD on one device) jumps from $7.99/month to $8.99/month. The Standard plan (HD on two devices) jumps from $10.99/month to $12.99/month. And the Premium plan (4K on four devices), jumps from $13.99/month to $15.99/month.
Everyone in the U.S. and most of Latin America will be hit with the price rises, as it's set to affect everyone who Netflix bills in U.S. dollars. New subscribers will be hit immediately, with the price increases rolling out to existing subscribers over the next few months.
Are Netflix's Price Hikes Justified?
In a statement, Netflix said, "We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience". The question is whether subscribers will be happy to pay extra for the original content.
While Netflix's price hikes are currently limited to the U.S. and its close neighbors, the chances are other countries will follow. We've previously argued that you should be happy to pay more for Netflix, but the higher the prices climb, the harder they are to justify.
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