Netflix's The Adam Project. (Photo: Netflix)
Netflix announced in its latest earning reports that it is raising prices in the US, Canada, Portugal, and Argentina.
In the US, the ad-free plan is going to be a dollar more, while the standard plan is going to cost US$2.50 more. The priciest premium tier will cost US$2 more. Here are the new prices versus the old ones.
- Ad-free – US$6.99 to US$7.99
- Standard – US$15.49 to US17.99
- Premium – US$22.99 to US$24.99
Netflix justified the price hike by saying:
As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.
It’s safe to assume that Netflix will look to increase prices for other markets around the world. The last time Singapore was hit by a price hike was in March last year.
To recap, these were the price hikes in Singapore:
- Basic – S$12.98 to S$13.98
- Standard – S$17.48 to S$19.98
- Premium – S$21.98 to S$25.98
Even with its numerous price hikes, Netflix is adding subscribers at a healthy rate. In its latest earning reports, it said it added 19 million new subscribers over the past few months, bringing its global subscriber count to over 300 million.
Despite the healthy earnings report, Netflix believes there is room for growth. The company believes it accounts for less than 10% of TV viewing in countries in which it operates, which it interprets as “a long runway for growth”.
Source: Netflix
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