Netflix is raising the price of its membership plans in the United Kingdom and Ireland, with the standard package rising by £1 ($1.31) to £10.99 ($14.46) in the United Kingdom and €2 ($2.20) to €14.99 ($16.54) in Ireland.
Its entry-level service, the basic plan, increased from £1 ($1.31) to £6.99 ($9.19) in the United Kingdom and from €1 ($1.10) to €8.99 ($9.92) in Ireland. This is the first rise to the basic package in the UK in ten years, and the first increase in the basic package in Ireland in eight years.
Meanwhile, its premium service will cost £2 ($2.63) more in the UK and €2 ($2.20) more in Ireland.
The price increase is effective immediately for all new members while existing members will be notified 30 days before the change takes effect.
Netflix said in a statement that the price increase would allow the company to “continue investing in best-in-class UK productions and offer a wide choice of curated quality series and films.”
With a content budget of $1 billion in 2020, the UK is Netflix’s largest production hub outside of the United States and Canada, producing over 10,000 employment for cast and crew. The streamer is also pledging to invest in the UK crew and talent pipeline through its Grow Creative program, which will cost £1.2 million ($1.58 million).
The Crown, Bridgerton, Emily In Paris, The Hand Of God, and The Power Of The Dog are among the most recent British and Irish shows available on the streaming service.
According to Netflix, each price plan will continue to provide subscribers with access to the company’s full content library without any hidden costs or additional levies. The company has lately launched a number of new services, including “Play Something,” which instantly plays a previously unwatched TV show or movie, and “Fast Laughs,” a button that links visitors to its short-form video feed.
On Thursday, Netflix will publish fourth-quarter earnings. Typically, Wall Street’s attention would be drawn to the streamer’s subscription growth. But this time, there’s something new for investors and industry observers to consider: Netflix’s sales predictions following a price increase.
The business upped subscriber costs on Friday, raising its stock price – and raising eyebrows – across the streaming sector.
“They certainly believe they still have the price capacity to do so and that they deliver an extraordinary value for the money,” said Andrew Hare, senior vice president of research at media consulting firm Magid.
Hare is convinced. Netflix (NFLX) recognizes that the market in the United States and Canada is maturing and that competition is severe. As a result, it is attempting to compensate for slower growth by raising subscription prices.