Here comes another price hike for Netflix customers in the U.S.: The streaming giant will hike the price of the Standard two-stream HD plan, its most popular package, by about 8% — going from $12.99 per month to $13.99.
In addition, Netflix’s Premium tier (with four streams) is going up by $2, from $15.99 monthly to $17.99 for U.S. customers. The price of the company’s Basic plan (with a single non-HD stream) will remain at $8.99 monthly.
Current subscribers will see the new pricing in the coming weeks with the start of their next billing cycle, while new subscribers who sign up as of Oct. 29 will pay the higher rates.
On Netflix’s earnings interview last week, COO and chief product officer Greg Peters declined to comment on when Netflix may decide to increase pricing in various markets. The company earlier this month hiked Netflix’s Standard HD two-stream plan in Canada from $14 to $15 (Canadian).
There’s no algorithm to decide when the company increases pricing, according to Peters. “We do an assessment: Do we believe that we’re really delivering more value to members?” he said, adding that “a North Star we hold close to our heart in this whole process is we think that we are just incredible entertainment value — and we very much want to remain an incredible value as we continue to improve the service and grow.”
Netflix last raised U.S. prices starting in the first quarter of 2019, when the Standard tier jumped 18%, from $10.99 to $12.99 per month. As the price hikes went into effect through Q2 and the back half of the year, Netflix’s cancellation rates rose but its revenue growth also accelerated: The company’s full-year 2019 revenue climbed 28%, to $20.2 billion, outpacing the 20% net subscriber increase.