Netflix will raise rates for all streaming plans in the U.K. and Ireland, marking the company’s second price hike in the region in less than 18 months.
This price increase comes after Netflix raised its subscription fees in Canada and the U.S. similarly in January. It was a result of a flood of new competitors and continued spending on original content, such as hit series. “The Crown,”The fifth season of the series will be released in November.
The streamer’s Standard plan (with two HD streams) is rising in the U.K. by £1 to £10.99/month and in Ireland it’s going up by €2 to €14.99/month. Netflix’s Basic package (one non-HD stream) is also going up by £1 to £6.99/month in the U.K. and by €1 to €8.99 in Ireland — the first time the company is increasing prices for that tier. The Netflix Premium service (four streams in up to 4K HD) will go up by £2 in the UK to £15.99/month and by €3 in Ireland, to €20.99/month.
“Our updated prices reflect the investment we have made in our service and catalog and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry,”Netflix stated in a statement. “We offer a range of plans so members can choose a price that works best for them.”
According to Ampere Analysis research, Netflix has around 14 million subscribers in Britain and 600,000 in Ireland. As of the end of 2021, Netflix had 221.8 million paid streaming subscribers worldwide.
New subscribers to the U.K. or Ireland will be notified immediately. Existing subscribers will receive a notice within 30 days of when their rates may rise depending on their billing cycle.
On Netflix’s fourth quarter 2021 earnings call in January, COO and chief product officer Greg Peters discussed the company’s strategy to determine how and when to raise prices. He explained that Netflix analyses metrics like sign-ups, engagement and churn rates (cancelation rate), which he stated. “are really our signal that we’ve done a good job at sort of creating this more value, and it’s the right time to ask for a little bit more to keep that going.”
Peters continued, “And so if we have incredible stories, movies that you can only see on Netflix, great TV shows, unscripted, now games coming, then… the value equation for any given member or member-to-be in a market is just are they getting good value for what they’re paying.”
(Pictured by Emma Corrin as Princess Diana “The Crown”Season 4
