By Abigail Mulonas
To help pay for new programming and other fees surrounding competitive TV streaming companies, Netflix announced Friday, Jan. 14 that the monthly subscription price will increase by $1 to $2 depending on your plan.
Netflix offers three plans: Basic, Standard and Premium. The Basic plan, increasing by $1, went from $8.99 to $9.99, and allows one stream per account. The Standard plan, originally $13.99, is now $15.49 and allows two simultaneous streams. The Premium plan, now $19.99, increased $2, enabling four simultaneous streams.
Netflix’s subscriber count was slowing down this past year, but quickly picked up after the release of “Squid Game” in September – adding 4.4 million new subscribers, most of which have come from overseas.
Now at a total of 213.5 million subscribers, this number is surprisingly not great for the company, as there was a record 36 million new subscriber increase in 2020.
Following two stagnant quarters, Netflix is only up about 1 million subscribers from the reports of this time years prior, and is not a lot in the grand scheme of things.
The draw to get new subscribers becomes more difficult, especially with the increased spending on projects and programming as well as the newly competitive market of streaming companies. In order to increase the variety of entertainment options available to its subscribers, the monthly price is increasing.
In comparison to its competitors, Netflix is the most expensive streaming service. HBO Max is offering $11.99 per month promotion for 12 months and a $9.99 per month student discount while Disney+ is $7.99 per month or $79.99/year and a 15% yearly discount for students.
Netflix, however, does not offer a lower price for students.
Still, some potential customers are turned off by the lack of a student discount. 24-year- old GRCC student and Grand Rapids resident Joe Zimmerman is one such person.
“I don’t pay for Netflix because I don’t need it if there is no student discount,” Zimmerman said.
Although Netflix has continued to add more subscribers following their past price increases, this shouldn’t be unfamiliar to its users.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” said a Netflix spokesperson.
The same statement was made to CNN the last time Netflix raised their prices in October of 2020.
Netflix has not announced its fourth quarter earnings yet. Their next subscriber report is due Thursday, Jan. 20 when the company posts their annual earnings.
As for the next monthly charge, Netflix users should be seeing the new price reflected on their next bill.