Netflix is Raising Its Prices
On Thursday, Netflix announced it would raise its subscription prices, according to CNBC.
The company is raising its standard plan by $1 per month, increasing it from $12.99 to $13.99. The premium plan will increase by $2 per month, from $15.99 to $17.99. The last time Netflix raised its prices was in January 2019. Netflix has been able to avoid significant price hikes due to consistently adding subscribers. This gave investors insight into the company's growth strategies and projections.
However, now consistent subscriber growth isn't enough. Wall Street wants more out of the $200 billion company. Netflix will look to continue its push to become a replacement of cable. “The goal is to become HBO faster than HBO can become us,” Netflix co-CEO Ted Sarandos said in 2013. However, the company has been slow with this process. Instead they've focused on developing their own movies and documentaries.
According to LightShed partners, the average cable package is around $100 a month. There are cheaper alternatives that have similar offerings such as Youtube TV or Sling TV. Netflix will continue to raise its prices and offer services similar to cable bundles.