Netflix has begun rolling out a price increase for its Basic and Premium plans in the US.
Starting Wednesday (October 18th), the Basic tier — which is no longer available for new members — will rise to $11.99 from $9.99. The Premium plan, which allows subscribers to watch in Ultra HD and supports up to four devices at the same time, will increase to $22.99 from $19.99.
Meanwhile, subscribers to the $6.99 per month Standard with Ads and $15.49 Standard plans will continue paying the same price.
“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 said in its third-quarter shareholder letter.
The price hike comes after the company reported 9 million new subscribers, with a revenue of $8.5 billion and operating income of $1.7 billion, in its Q3 earnings. Last quarter, Netflix said it picked up 5.9 million new subscribers following its crackdown on password sharing between multiple households.
Once again, the streamer boasted about low cancellations in reaction to the crackdown, stating, “The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention. As a result, we’re revenue positive in every region when accounting for additional spin off accounts and extra members, churn and changes to our plan mix.”
Netflix began its password sharing crackdown in the US on May 23rd, charging account holders $7.99 per month to add an extra member outside of their household.
