Netflix announced a price increase for many of its 73 million subscribers as it sees more competition from Peacock and Apple TV+.
Subscribers to Netflix’s standard plan will see a price increase from $12.99 to $13.99 per month, and premium users’ bills will go up from $15.99 to $17.99 per month. The price remains at $8.99 per month for basic subscribers. Many expect the price hike will lead to a substantial increase in Netflix’s revenue, and Netflix’s stock prices rose 5% following the news.
This move is a risk for Netflix, especially as other companies are restructuring their staff to focus on streaming and offering more binge-worthy programs. However, the company also anticipates that it will not see competition from movie theaters for several months.
Some of Netflix’s competitors are beginning to establish themselves in a crowded market. The comedy “Ted Lasso” brought Apple TV+ its first broad hit series, and Disney+ debuted its second season of its buzzy show “The Mandalorian.” NBCUniversal’s Peacock has yet to land a hit, but has carved its own space in the streaming world by offering a free, ad-supported tier.
HBO Max has been slower to establish itself in this space. The streamer still has yet to land a hit show, and AT&T still has not worked out a deal with Roku or Amazon to allow HBO Max on their devices.