Netflix hikes prices, how will subscribers react?

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Netflix’s standard plan now costs more than $15 a month for new members. While subscribers may not love this news, Wall Street does because it shows the market power of the streaming giant. Photo by Shutterstock.

The newest Netflix price hike now means a standard plan on the streamer will cost $15.49 a month. That’s the rate for new members. Netflix will start charging current subscribers more in the coming weeks. 

The new price now officially makes Netflix 50 cents more expensive than HBO Max, which is surprising because for years, HBO was known to cost more because of the premium quality. 

Netflix is trying to figure out the math problem that allows them to continue to grow while not losing subscribers. Wall Street reacted positively to the higher prices — they show that Netflix has market power. 

If Netflix wanted to find other ways to make money, it could. The streamer has long threatened to crack down on password sharing, which would force more people to sign up for their own accounts. 

And while Netflix has said it is close to reaching market saturation in the U.S., there’s still lots of room to grow in other countries, where pricing strategies are different. 

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Producer:

Kaitlin Parker