Netflix Inc. recently took steps to crack down on password sharing, and now the company is implementing a new series of price hikes in an effort to further boost its revenue.
In a letter to shareholders on Wednesday, Netflix announced its plans to increase prices on several U.S. plans, effective immediately. While the ad-supported service will remain at $6.99 per month, and the standard plan will continue at $15.49 monthly, the basic tier will see a price increase to $11.99 per month, and the premium tier will rise to $22.99 per month.
Previously, the basic plan was priced at $9.99 per month. Although Netflix recently discontinued this tier for new members, existing members have been able to maintain their subscription at this price point. The premium tier was previously priced at $19.99 per month.
In addition to the U.S., Netflix is also raising prices for its basic and premium plans in the U.K. and France, while keeping the pricing of the ad-supported and standard tiers consistent.
According to the shareholder letter that accompanied Netflix’s third-quarter financial results, the company stated, “Our starting price is extremely competitive with other streamers, and at $6.99 per month in the U.S., for example, it’s much less than the average price of a single movie ticket.” Netflix believes that as they continuously deliver more value to their members, occasional price increases are warranted.