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Get ready for more Netflix price hikes in the near future
- Netflix is completely retiring its Basic plan, even for existing subscribers who are already using it.
- The platform also plans to “occasionally” hike subscription prices as it invests more towards its growth.
Netflix has released its Q4 earnings report, and in a letter to its shareholders, the streaming giant has shared plans to further monetize the platform.
Firstly, Netflix is completely retiring its Basic plan in markets where it now offers the Standard with ads plan. Previously, the company had restricted new and returning customers from signing up for the Basic plan, but those already on it could keep it until their subscription ran out.
Now, the platform will forbid existing Basic plan subscribers from using the plan any further. The changes will first apply to Netflix users in Canada and the UK, followed by other markets where Netflix now offers the ads plan.
The company noted that its ads plan now accounts for 40% of Netflix sign-ups in all markets where the option is available.
Next up, Netflix has said that it will increase rates for subscribers as it invests more in improving the platform. There’s no word on when these rate hikes will come and which markets will be affected, but rest assured, you can expect your subscription costs to go up in the near future.
“As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service,” the company wrote in its shareholder letter.
“We seek to provide a range of prices and plans to meet a wide range of needs, including highly competitive starting prices,” it added.