The famous SVoD service will increase its prices in the United States. The firm promises that this price increase will be done country by country, and will therefore not concern France.
For several years, as it has established itself as the essential SVoD service, Netflix has been increasing the prices of its subscriptions. In the United States, the price has already increased in January 2019, and has increased again today October 30, 2020. Netflix has indeed announced that the premium subscription at $ 16 per month will now be billed at $ 18 per month, and the classic 13 dollar subscription would increase by one dollar to 14 dollars per month. Small regular increases that end up moving Netflix away from the symbolic price of 9.99 dollars per month which had made its success.
While Netflix has to face increasingly fierce competition in France, with services like Amazon Prime Video, Disney +, or even OCS (with the HBO series) and Salto, the situation is even more complex in the United States where the ‘there are also Peacock, YouTube and Hulu. For Netflix, this additional income should allow it to invest in ever more content, the famous “Netflix Originals”.
No change in France
A Netflix official confirmed to The Verge that the prices were decided country by country within the firm. An increase in the subscription in France is therefore not on the agenda for the moment. It might happen eventually, but it will not be the direct result of the increase in the United States.
For the service, the challenge is to continue to produce or pay for successful content that will allow its subscribers to stay in this service rather than watching that of others.