Netflix Inc. NFLX 3.70% raised the month-to-month worth of its hottest plan for the primary time since early 2019, a transfer that comes because the streaming service competes with a rising variety of cheaper options.
Netflix NFLX 3.70% mentioned Thursday its normal streaming plan will now value $13.99 a month, up from $12.99. Its $8.99-a-month fundamental plan will stay unchanged, whereas the price of its premium plan will rise to $17.99 from $15.99. The adjustments go into impact for brand spanking new subscribers instantly, and present subscribers will see their charges go up inside the subsequent two months.
The worth improve comes within the wake of Netflix missing its third-quarter subscriber projections amid rising competitors and the persevering with results of the coronavirus on the economic system. Whereas Netflix loved robust progress within the first and second quarters of this yr as individuals stayed at dwelling, new subscriptions slowed within the third quarter.
In a press release, Netflix attributed the value will increase to the prices of making unique programming. “We’re updating our costs in order that we are able to proceed to supply extra number of TV reveals and movies—along with our nice fall line up,” the corporate mentioned.