Netflix has started rolling out its new price hike across the United States with subscriptions increasing for both the Basic and Premium plans. The price hike was expected and last month reports of the increase began swirling online after the SAG strike ended. Netflix has reportedly increased these prices to accommodate the new royalties attached to films and TV shows on the platform.
These royalties will be paid to both writers and actors involved in projects. They are described as residuals for content consumed on the platform. Netflix has also promised to pay actors and writers a higher minimum pay.
Starting today, Netflix will cost $11,99 for the Basic plan and $22,99 for the Premium Plan. This is up from $9,99 and $11,99 respectively.
Netflix says its ad-supported tier will stay the same at $6,99 and $15,49. Netflix boasts that its service still costs much less than a movie ticket to the cinema saying:
“As we deliver more value to our members, we occasionally ask them to pay a bit more.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.”
At the moment it doesn’t seem as if our South African pricing is changing. However, we will likely see the price adjusted in the coming months to align it with other territories.
Netflix currently costs between R49 and R199 in South Africa depending on your tier. There is currently no ad-supported tier available. The company is only testing this service in supported regions before rolling it out globally.
Source: Netflix earnings