Netflix is raising prices for the second time in a year

Your streaming bill just crept up, as Netflix has raised its subscription prices again. This is the second time in just over a year, and this time, every single plan is getting hit.

Let’s look at what is changing and how much more you will have to pay.

Netflix now wants $1 or $2 more of your coins

The ad-supported plan used to be $7.99 a month. It is now $8.99. The standard ad-free plan has jumped to $19.99 from $17.99, and the premium plan now costs $26.99 instead of $24.99. Even the “extra member” fee has gone up by a dollar.

If you’re a new subscriber, you’ll see the new prices immediately. But if you’re already subscribed, the increase will roll out over the next few weeks, with Netflix giving you a heads-up before your billing cycle changes.

Why you have to pay more

Netflix executives have since explained that they opt for price hikes when the platform has enough value to justify it. But the real writing on the wall is basically “we’re spending a lot of money, and that money has to come from somewhere.”

We are talking more than $20 billion going into content this year alone. That includes original shows and movies, live events, games, and newer formats like video podcasts. 

Instead of buying content and chasing big acquisitions, Netflix is putting more money into building its own ecosystem. And alas, the subscribers have to pay for it.

It is also worth mentioning that Netflix still has the lowest churn rate in streaming. This gives the company the confidence to keep pushing prices up, as users clearly don’t cancel as much as they complain. 

The entire streaming industry is moving the same

As far as increased subscription prices go, Netflix isn’t moving alone. From Prime Video and Disney+ to Paramount+ and Apple TV+, other platforms have already raised their prices or restructured their plans.

Features that used to be standard, like ad-free viewing or 4K streaming, are now being pushed into higher tiers. 

In all, the cheap, all-in-one streaming setup that made everyone cut cable in the first place is slowly disappearing. Now it’s multiple subscriptions, different tiers, and having to choose between ads and no ads.

And with Netflix raising its prices yet again, it’s safe to expect other platforms to do the same soon.

Sources: Tom’s Guide, The Hollywood Reporter