Netflix Raises Price of Standard, Premium Plans
October 29 2020 - 4:48PM
Dow Jones News
By Joe Flint
Netflix Inc. raised the monthly price of its most popular plan
for the first time since early 2019, a move that comes as the
streaming service competes with a growing number of cheaper
alternatives.
Netflix said Thursday its standard streaming plan will now cost
$13.99 a month, up from $12.99. Its $8.99-a-month basic plan will
remain unchanged, while the cost of its premium plan will rise to
$17.99 from $15.99. The changes go into effect for new subscribers
immediately, and current subscribers will see their fees go up
within the next two months.
The price increase comes in the wake of Netflix missing its
third-quarter subscriber projections amid growing competition and
the continuing effects of the coronavirus on the economy. While
Netflix enjoyed strong growth in the first and second quarters of
this year as people stayed at home, new subscriptions slowed in the
third quarter.
In a statement, Netflix attributed the price increases to the
costs of creating original programming. "We're updating our prices
so that we can continue to offer more variety of TV shows and films
-- in addition to our great fall line up," the company said.
(More to Come)
Write to Joe Flint at joe.flint@wsj.com
(END) Dow Jones Newswires
October 29, 2020 16:33 ET (20:33 GMT)
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