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On Friday 14 January Netflix announced that increased the prices of all its subscription plans. Now the most popular plan that allows you to watch HD video will no longer cost $15.49 Dollars. The highest quality plan will cost users $19.80 dollars per month, while the basic plan will now cost $9.99 dollars.
The company assured that the reason for the increase is to continue offering a wide variety of quality entertainment options.
However, there is a primary reason why the company increased its prices: in the absence of a significant number of new subscribers the service of the streaming platform aims to keep its shareholders happy.
After the announcement of the price increase, the company’s shares increased.
Netflix counted until October 2022 with 214 million subscribers and is the largest streaming service platform.
Some of the reasons why streaming service companies are not growing like in previous years is that up to a third of people share a password so it is estimated that 70 millions of people use Netflix without paying.
Netflix has decided that the easiest way to increase revenue is to charge their customers more money for the same service .
Due to the power that the company has in the market, consumers will continue to pay whatever Netflix decides to charge.
For the last five years Netflix has increased the price of its main plan by about $8 dollars.
So far the platform is not offering new features in its plans while it continues to invest in new content.
Related: YouTube: Disney withdraws its ABC and ESPN channels from the streaming platform
Most of the platforms that compete with Netflix have a lower price Some even have a monthly price that is equivalent to half of the company’s cheapest plan .
Netflix mentioned that the price change is effective immediately for new customers and will be gradually introduced to customers.
If you are already a client of the streaming platform, Netflix will notify you at least 30 days before the new service price is charged.
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