Netflix prices increase in UK
Staff Reporter | On 07, Jan 2021
Netflix is increasing its prices for UK subscribers this week.
The streaming giant has gradually hiked its subscription fees over the years since it launched on UK screens, mostly to cover the costs of marketing and expansion around the world. With growing investment in content production, particularly in the UK, and with coronavirus safety measures on its projects bumping up the production expenses, now the company is seeking to bolster its coffers with another increase.
The last price rise was in 2019, with its Standard tariff (streaming up to two devices in HD) rising to £8.99 a month and the Premium tariff (up to four devices in up to Ultra HD) rising to £11.99 a month. The Basic tariff (streaming on one device in SD) remained the same at £5.99 a month.
Now, the Standard tariff is rising to £9.99 a month, while the Premium tariff is rising to £13.99 a month.
A spokesman said in a statement: “This year we’re spending over $1bn in the UK on new, locally-made films, series and documentaries, helping to create thousands of jobs and showcasing British storytelling at its best – with everything from The Crown, to Sex Education and Top Boy, plus many, many more. Our price change reflects the significant investments we’ve made in new TV shows and films, as well as improvements to our product. Our basic membership will remain at the same price, ensuring as many people as possible can enjoy our content.”
The move comes as Disney+ prepares to raise its own price from £5.99 a month to £7.99 a month in February, alongside the launch of its new adult section Star. It also arrives at a time when more people than ever are turning to streaming platforms to keep entertained during the coronavirus pandemic.
As always with Netflix, new customers will be charged these rates first, while existing customers will be rolled over to the higher price when their subscription next renews.
Netflix confirms UK price rise
31st May 2019
Netflix has confirmed that it is raising its prices for UK subscribers.
The streaming giant has been toying with the idea of a price hike for Brits, after an increase for US users. The service normally splits into three tiers – Basic (£5.99 a month), Standard (£7.99) and Premium (£9.99), the latter of which includes 4K content. In recent months, Netflix has been testing out higher prices, working out whether customers would value the service enough to pay more for each respective tier.
Now, prices have officially gone up, with the Standard tariff (streaming up to two devices in HD) rising to £8.99 a month and the Premium tariff (up to four devices in up to Ultra HD) rising to £11.99 a month. The Basic tariff (streaming on one device in SD) will remain the same.
As always with Netflix, new customers will be charged these rates immediately, while existing customers will be rolled over to the higher price when their subscription next renews.
The price rises comes at a time when Netflix is stepping up its investment in original content, as it continues to look to in-house productions rather than content licensed from third parties. Those third parties, meanwhile, are increasingly launching their own subscription models, from Disney to Warner Bros.. However, with growing competition comes a whole new battle away from content selection. While NOW’s NOW Cinema Membership in the UK costs £11.99 a month, Disney’s subscription platform, Disney+, will be priced at $6.99 a month in the USA, which will undercut Netflix’s rates.
Netflix is testing price increases for UK customers
22nd March 2019
Netflix is testing price increases for UK subscribers.
The streaming giant is one of the dominant forces in the online video space, with 130 million subscribers worldwide. As it expands, though, it faces growing costs, not just in terms of marketing but also investing in content to tailor to each target market and audience group. As it looks to move from licensing third party titles to primarily producing its own original content, it is also increasingly signing deals directly with creators such as Ryan Murphy and Shonda Rhimes.
All of this means that it’s no surprise that Netflix has been looking to raise its prices, bumping subscription fees in the USA at the start of the year. While that was solely restricted to American customers, though, Netflix has now confirmed that it is testing higher prices for British users.
The service normally splits into three tiers – Basic (£5.99 a month), Standard (£7.99) and Premium (£9.99), the latter of which includes 4K content. Now, users have reported seeing higher values on the site, with prices of £6.99, £9.99 and £12.99 a month respectively. Others, however, have reported seeing £5.99, £8.99 and £11.99.
Rather than an official plan to change prices – at least, not yet – the differing figures are part of a test by Netflix to determine how the service is valued and what kind of price points might be acceptable for UK users.
“We are testing slightly different prices to better understand how members value Netflix,” a spokesperson told Digital Spy. “Not everyone will see this test and we may never roll out these specific prices beyond this test. Our goal is to ensure that Netflix is always great value for money.”
Netflix UK prices will not rise for now
16th January 2019
Netflix UK prices will not rise for the immediate future, despite prices jumping for subscribers in the US.
The streaming giant, which currently has around 137 million subscribers worldwide, is poised to announced its latest figures for Q4 2018 this week. In the third quarter of last year, it saw record growth, adding 7 million subscribers – up 31 per cent on the 5.3 million added in the same period of the previous year.
That growth, though, is driven by a staggering investment in original content, in addition to the costs of marketing in target areas: Netflix spent more than $8 billion on content in 2018 alone, with some projecting that investment would rise as high as $13 billion. With a reported $80 million spent by Netflix just to keep the sitcom Friends on the service, the balance between Netflix’s subscription revenue and its outgoings is an ongoing tightrope act.
As a result, Netflix has raised its subscription fees multiple times over recent years, freezing existing customers for certain periods and gradually phasing in the higher monthly costs. US customers were surprised yesterday, then, when Netflix announced a price hike of between 13 per cent and 18 per cent, with its Basic plan up from $8 a month to $9, its Standard plan (up to 2 screens simultaneously in HD) climbing from $11 a month to $13 and the 4K Premium plan from $14 to $16.
Netflix, however, tends to raise its prices incrementally worldwide, with different markets seeing price changes at different times, as each country has different membership sizes, different household incomes and different content libraries. While prices may well climb on British soil in the future, Netflix has confirmed to multiple publications that the US price hike is just that – a price hike solely for American costumers.
“Price increases are specific to each country and the US increase does not influence or indicate a UK price change,” a spokesperson told Digital Spy.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members,” Netflix told the BBC, adding the US bump was not an indication of global pricing plans.
Shares in the company have risen by more than 5 per cent following the news, as Netflix braces itself for fresh competition from Disney and NBCUniversal, which have their own plans to launch streaming platforms in the next two years.