Netflix has some smart people over there. If you’ve been following, the streamer recently announced a crackdown on password sharing. That move, as evidenced by its Q3 figures which were published this week, resulted in added customers. In time for that, the company has also announced price increases for two of its popular plans. Coincidence? Give me a break.
In the US, the ads ($6.99/mo) and Standard plans ($15.49/mo) will not change, but for those using the Basic plan, it’s getting bumped to $11.99/month and the Premium plan is going up to $22.99/month. These price changes have already taken affect.
In its announcement, Netflix says, “Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.”
Netflix stock is up nearly 50 points at the time of this writing.
// Netflix (Shareholder Letter)