Netflix is raising subscription prices in the aftermath of its Q3 earnings report. The company reported that sign-ups are up for its ad-supported plan and that its on track to grow revenue and expand its operating margin by the end of the year.
The streamer also cited difficulties over the past six months due to the WGA strikes. While Netflix reached an agreement with the WGA, negotiations with the actors union, SAG-AFTRA, are still ongoing.
Amid this, Netflix announced it’ll be hiking the costs of both its Basic and Premium plans. The Basic plan is no longer available for new subscribers after being discontinued earlier this year, though grandfathered customers have retained their access to it. That plan is being increased from $10 USD monthly to $12 USD.
The Premium plan, meanwhile, is being raised from $20 USD monthly to $23 USD. Just last year, Netflix had bumped the Premium plan up from $18 USD, along with raising the cost of the ad-supported plan at the time.
“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix reported in its Q3 earnings.
“Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.”
The news isn’t particularly surprising, as Netflix has been known to increase all of its plans by a few dollars every couple of years or so, though still disappointing to many subscribers.
In other entertainment news, Prime Video released an official documentary trailer for Maxine’s Baby: The Tyler Perry Story.
