Netflix will raise rates for all streaming plans in the U.K. and Ireland, marking the company’s second price hike in the region in less than 18 months.
The price increases come after Netflix similarly raised subscription fees in the U.S. and Canada in January, amid a tide of new competitors and its continued spending on original content like hit series “The Crown,” whose fifth season is set to bow in November.
The streamer’s Standard plan (with two HD streams) is rising in the U.K. by £1 to £10.99/month and in Ireland it’s going up by €2 to €14.99/month. Netflix’s Basic package (one non-HD stream) is also going up by £1 to £6.99/month in the U.K. and by €1 to €8.99 in Ireland — the first time the company is increasing prices for that tier. The Netflix Premium service (four streams in up to 4K HD) will go up by £2 in the UK to £15.99/month and by €3 in Ireland, to €20.99/month.
“Our updated prices reflect the investment we have made in our service and catalog and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry,” Netflix said in a statement. “We offer a range of plans so members can choose a price that works best for them.”
Netflix has about 14 million subscribers in the U.K. and 600,000 in Ireland, according to research firm Ampere Analysis. As of the end of 2021, Netflix had 221.8 million paid streaming subscribers worldwide.
The price increases in the U.K. and Ireland go into effect immediately for new subscribers, while existing subscribers will receive a 30-day notice for when their rates will go up depending on their billing cycle.
On Netflix’s fourth quarter 2021 earnings call in January, COO and chief product officer Greg Peters discussed the company’s strategy to determine how and when to raise prices. Netflix analyzes metrics like engagement, sign-ups and churn (cancelation rates), he said, which “are really our signal that we’ve done a good job at sort of creating this more value, and it’s the right time to ask for a little bit more to keep that going.”
Peters continued, “And so if we have incredible stories, movies that you can only see on Netflix, great TV shows, unscripted, now games coming, then… the value equation for any given member or member-to-be in a market is just are they getting good value for what they’re paying.”
(Pictured: Emma Corrin as Princess Diana in “The Crown” Season 4)