Your Netflix Subscription Price is Going Up Again

Recently streaming giant Netflix made the announcement that it would be raising its U.S. standard plan prices by $1 per month and $2 per month for its premium plans.

Netflix’s standard plan will move from $12.99 to $13.99 and its premium plan will rise from $15.99 to $17.99. The entry-level basic plan remains at $8.99 per month, the same price that was introduced last year.

Raising the price of these plans periodically has become a part of the company’s long-term strategy. Netflix has a market valuation of over $200 billion.

Current Netflix customers will see the updated prices on their bill over the next two months, Netflix told CNBC. Customers will get a warning 30 days prior to the change.

The last time the company raised its plans’ prices was in January of 2019. Prior to then, the basic, standard and premium plans were available for $8, $11 and $14, respectively.

On the company’s latest earnings call, chief operating officer Greg Peters hinted that a price increase might be coming and said that if Netflix continues to do a great job investing in original content to deliver more value for users, then Netflix feels like “there is that opportunity to occasionally go back and then ask for members, where we’ve delivered that extra value in those countries, to pay a little bit more.”

The standard plan with the streaming giant offers up to 1080p quality and allows people to watch on two screens at the same time. Its premium plan includes support for sharper 4K resolutions and HDR and up to 4 screens at the same time. The basic plan supports 480p, about the quality of a DVD.

It was on October 20th that Netflix reported third quarter financial results revealing $6.44 billion in revenue, operating income of $1.32 billion, along with $1.74 in per-share profit off of net income of $790 million.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.