Netflix is fully aboard the stream-flation bandwagon.
The streaming giant just raised prices for its three plans, a little over a year after it last asked subscribers to pay more.
Netflix’s standard ad-free plan now costs $19.99 a month, up from $17.99, while the premium 4K plan also got a $2 increase to $26.99 a month. The ad-supported Netflix subscription rose by a dollar to $8.99 a month.
While Netflix customers may complain about higher prices, most other major streamers have also steadily gotten more expensive.
Disney+, HBO Max, Peacock, and Apple TV+ all raised prices last year following Netflix’s January hike. Disney has raised the price of its flagship streaming service in each of the past four years.
Hollywood is trying to squeeze more money out of each streaming subscriber to improve or achieve profitability.
However, there are signs that consumers are sick of stream-flation.
Free streamers like YouTube have become increasingly popular in recent years, growing in viewership share on US TVs, as measured by Nielsen. Increased costs could be driving some consumers toward free streaming services ranging from the Roku Channel to Fox’s Tubi.
The good news for Netflix is that it still looks like a solid deal for consumers after its latest round of price hikes.
Netflix’s ad plan is cheaper than comparable plans for Disney+, Hulu, HBO Max, and Peacock (it’s the same price as Paramount+ and the standalone version of Amazon’s Prime Video).
Netflix also offers a far larger library than most of its rivals and is watched more frequently than its peers. That makes Netflix the best value on a cost-per-hour-of-consumption basis, UBS analysts wrote last year.
