Big blow to Netflix users, streaming service increased the price of its plans

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San Francisco. Streaming service Netflix has increased the prices of its plans, shocking its customers. Now users in America will have to pay $11.99 per month for its basic plan, which was earlier $9.99.

Those paying $19.99 per month for its premium plan will have to pay $22.99. Netflix’s $6.99 ad-supported plan and $15.49 standard tier will not change for now.

“As we provide more value to our members, we sometimes ask them to pay a little more,” Netflix wrote in a letter to shareholders as it announced its third-quarter results late Wednesday.

“Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, this is significantly lower than the average price of a movie ticket,” the company said.

The company has not yet revealed whether the new prices will be effective in other global markets, including the price-sensitive India market.

The streaming giant added 8.76 million new subscribers during the quarter, bringing the global total to 247.15 million.

Netflix said, “Our third quarter financials were in line with forecasts, including revenues of $8.5 billion, net adds of $9 million and operating margin of 22.4 percent.

In addition to the larger-than-expected password-sharing crackdown, Netflix also saw significant gains in its ad-supported plan, with subscriptions increasing nearly 70 percent quarter over quarter.

The company estimates fourth-quarter revenue will grow 11 percent to $8.69 billion.

(IANS)

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