Starting Wednesday, Netflix increased its prices in the U.S., U.K. and France. The company announced this price hike during its third quarter earnings report for 2023.
Currently, the streamer’s Standard with ads plans and its Standard without ads plans will remain the same at $6.99 a month and $15.49 a month, respectively. However, its Basic plan has jumped to $11.99 a month — an increase of $2 a month — and Premium is now $22.99 a month — an increase of $3 a month.
The Basic plan is a holdover from a previous era of Netflix. New subscribers are unable to sign up for it. Only those who currently subscribed to the discontinued plan or the Premium plan will see a price increase.
As for the U.K. and France, the new prices will be £4.99 and 5.99€ for Standard with ads; £7.99 and 10.99€ for Basic; £10.99 and 13.49€ for Standard without ads; and £17.99 and 19.99€ for Premium. Much like in the U.S., the Standard with ads plans and the Standard without ads plan will remain the same price as before.
Despite this increase, Netflix is predicting that the global adjustable-rate mortgage for Quarter 4 will remain relatively flat year-over-year. This is in part due to limited price increases that have taken place in the last 18 months.
The earnings report also noted that Netflix’s recently launched ad plan continues to drive subscriber growth. Membership for the ad tier has increased nearly 70% quarter over quarter, and 30% of Netflix signups in countries that offer the option are for the ad plan. The plan was first introduced nearly a year ago in early November 2022.
As promising as the ad tier may be for the streamer, it’s not all happy news. During a presentation at Bloomberg’s Screentime conference last Thursday, Netflix co-CEO Ted Sarandos noted that the ad tier is “definitely not at the scale that we want it to be at yet and consumers have to choose between it.”
