Netflix has announced it will be increasing its prices for its subscription packages in the UK.
The basic and standard plan will both increase by £1 a month to £6.99 and £10.99 respectively, while the premium tier will go up by £2 to £15.99.
The US streaming giant has said that these changes will allow it to “continue investing in best in class UK productions” and “offer a wide variety of curated quality shows and films”.
A Netflix spokesperson told PA: “We have always been focused on providing our members both quality and clear value for their membership.
“Our updated prices reflect the investment we have made in our service and catalogue, 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. We offer a range of plans so members can choose a price that works best for them.”
The price change is immediate for all new members, while existing members will be notified by email 30 days.
Ryan Cook, UK managing director at ad firm Criteo, said: “While a price increase was on the cards following the increase for US subscribers in January, it’s an interesting move in light of Disney+’s recent decision to introduce an ad-supported tier and Netflix’s own CFO, Spencer Neumann, declaring “never say never” with regard to Netflix’s own stance on such a proposition.”
“Supporting Netflix’s blockbuster content pipeline needs significant funding, but subscriber growth has been in question for the UK market since last year – in Q2 2021, only 2.3 per cent of Great Britain’s SVoD households took out a new subscription.”
He said that the “elephant in the room” remains advertising, and based on the number of paid platforms, Comcast research suggested that 80 per cent of consumers would prefer an ad-supported service over another premium SVOD service.
“Given the momentum at the moment with ITVX and Disney+ announcing new ad-supported ways to watch premium new content, there’s certainly an opportunity for Netflix to follow suit without raising too many eyebrows. Time will tell if this latest move is laying the groundwork for a new set of subscription options to be announced later this year”, Cook said.