Netflix is increasing prices by as much as 20 percent for many US customers
As Netflix revealed its quarterly earnings, the company also announced a couple of subscription price hikes for its customers in the US, UK and France. The price increases come despite Netflix's recent password-sharing crackdown which it says has resulted in millions of new revenue-bringing subscribers.
Both the Premium plan and the Basic plans will increase in price, but the Standard and ad-supported plans will remain as they are. Although Netflix's Basic plan is no longer available to new customers, users who have been grandfathered on this tier face the largest price jump.
Netflix shares tumble as company reveals drop in subscribers, plans for ads, and price increases for account sharers
Shares in Netflix plummeted by more than a fifth after the streaming company reported a drop in subscriber numbers for the first time in more than a decade. In the first quarter of 2022, Netflix lost 200,000 subscribers and the prediction is for things to get much worse over the rest of the year.
For those subscribers who are sticking around, there is a double whammy of bad news. Not only is there the threat that Netflix will introduce advertisements, but also that it will charge higher subscription fees to anyone who shares their account with others.