Your Netflix Expenses are About to Go Up

If you enjoy binge-watching on Netflix, then unfortunately, we have some bad news for you.

For several reasons, Netflix is increasing the costs of subscriptions going forward. The rate increases are expected to lead to some cancelled subscriptions.

Netflix is trying to walk on a tightrope, as many streaming services now are. Subscribers to streaming services tend to be quite sensitive to changes in subscription costs, a fact that hasn’t gone unnoticed in the industry. On the other hand, if the proposed hikes don’t scare off too many subscribers, Netflix will have plenty more money to invest in more content. Polling conducted by the Diffusion Group revealed that very few Netflix subscribers would unsubscribe over a $1 price hike. However, if the price hike is more than $1, huge swathes of Netflix subscribers say they would unsubscribe.

Netflix’s most popular plan, which used to cost $10.99/month now costs $12.99/month. The cheapest plan, which is non-HD, used to cost $7.99/month but is now $8.99. The Premium plan which allows four simultaneous 4K streams used to cost $13.99/month, but now costs $15.99/month.

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5 years ago