Due To Fierce Competition With HBO Max And Disney+, Netflix Subscription Fees Are Going Up

JAKARTA - Seeing the price increase from competing streaming services, Netflix decided to increase the price of its video streaming service in the United States (US) and Canada.

Netflix does regularly increase its subscription fees, and this time it's been less than a year and a half since its last price increase.

The company based in Los Gatos, California, USA, stated that the subscription fee will increase by 1 to 2 US dollars. The monthly fee for the Regular plan rose to US$9.99, the Standard plan jumped to US$15.49, and the Premium plan increased from 17.99 to US$19.99. Likewise, prices in Canada have also changed.

Plans vary based on variables such as the number of screens a user can use to watch Netflix simultaneously and the number of phones or tablets that can be downloaded. The company still ships DVDs in a service that requires a separate package.

"We're updating our pricing so we can continue to offer a wide selection of quality entertainment," said a Netflix spokesperson.

Citing NBC News, Monday, January 17, Netflix has raised prices in previous years and it is part of the company's long-term strategy, most likely the increase in subscription fees will also apply globally, including its market in Indonesia. Previously, Netflix also raised prices for US subscribers in 2019 and 2020.

Of Netflix's 213.5 million subscribers, about 74 million are in the US and Canada, the rest the company gained global subscribers at the start of the pandemic, but invested in video games as it looked beyond film and TV for growth.

The price increase took effect last week. Netflix will notify subscribers via email and within the Netflix app before new prices apply to them.

Subscribers in New York, Alabama, and Louisiana were also hit by a new local sales tax bill, which Netflix said was caused by the addition of video games to the service.

Increasing subscription fees carries the risk that people will cancel the company's services. Even so, Netflix remains the dominant US streaming service, HBO Max and Disney+ also trailing behind its growing popularity.