Netflix has once again adjusted its pricing structure, this time impacting UK subscribers. Following similar increases in the US, Canada, Argentina, and Portugal last month, UK users are now facing higher monthly fees across all subscription tiers. Is this the new normal for streaming, and how much is too much?
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The Breakdown: What's Going Up?
The most popular plan, the Standard subscription without adverts, has jumped by £2 to £12.99 a month. But the increases don’t stop there:
- Standard with adverts: Up £1 to £5.99 a month.
- Premium: Up £1 to £18.99 a month.
- Extra Member add-ons: Up £1.
This means adding an extra member to a Standard plan (with adverts) now costs £4.99 (up from £3.99), while adding one to a Standard plan (without adverts) rises to £5.99 (up from £4.99).
These changes are already reflected on the Netflix website and apply to both new and existing customers.
Why the Price Increase?
Netflix justifies the price hike by stating it will “continue to invest in programming and deliver more value for our members.” The streaming giant recently reported record global subscriber numbers, exceeding 300 million by the end of 2024, partly fueled by its expanding sports coverage. They also cite the need to “occasionally ask our members to pay a little more” to reinvest and further improve the platform.
A Familiar Trend: Are Streaming Prices Just Like Cable Now?
Technology analyst Paolo Pescatore from PP Foresight suggests these increases were “widely expected,” noting that “the streaming business is following mainstream TV in its price rises, and we should get accustomed to them.” This echoes a broader trend, with other streaming giants like Disney+, Spotify, and Paramount+ also raising their prices globally in 2024.
However, Pescatore cautions that Netflix must “tread extremely carefully,” warning that there’s a limit to how much consumers are willing to pay. “There is a ceiling, a point at which consumers will become incredibly frustrated by price hikes,” he says.
The Password-Sharing Crackdown and Subscriber Boom
Netflix’s recent success can also be attributed to its crackdown on password sharing, implemented in May 2023. This move, while initially controversial, resulted in millions of new sign-ups. The company significantly outperformed subscriber growth expectations in late 2024, adding nearly 19 million subscribers instead of the projected 9.6 million.
Sports, Squid Game, and Soaring Profits
Netflix’s subscriber boom was boosted by the second series of the popular South Korean drama *Squid Game* and the expansion of its sports content. The platform made headlines by streaming two NFL games on Christmas Day and hosting a boxing match between Jake Paul and Mike Tyson. These strategic moves seem to be paying off, with net profit doubling year-on-year to $1.8 billion between October and December, and sales rising from $8.8 billion to $10.2 billion.
The Big Question: Is It Worth It?
With increasing prices across the board, the question remains: is Netflix, or any streaming service, still worth the cost? Consumers will have to weigh the value of the content against the rising subscription fees. As the streaming landscape continues to evolve, price sensitivity will likely play a crucial role in determining which platforms thrive and which fall behind.
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