Oct 30, 2020 10:56:00

Netflix Expands Target Areas for Monthly Charge Increases

Netflix, a major video distribution service, raised the monthly fee for some plans in the United States on Thursday, October 29, 2020, local time. Netflix Chief Operating Officer Greg Peters also suggested a monthly fee increase at the

October 2020 earnings call.

Plans and Pricing
https://help.netflix.com/en/node/24926/us

Netflix raises prices on standard and premium plans
https://www.cnbc.com/2020/10/29/netflix-raises-prices-of-its-standard-and-premium-monthly-plans.html

Netflix prices are being increased in the US today, standard plan jumps to $ 14 --The Verge
https://www.theverge.com/2020/10/29/21540346/netflix-price-increase-united-states-standard-premium-content-product-features

In the price increase that Netflix made on October 29, the monthly fee of the standard plan will be changed from the conventional $ 12.99 (about 1360 yen) to $ 13.99 (about 1460 yen), and the premium plan will be changed from the conventional $ 15.99 (about 1670 yen) It became 17.99 dollars (about 1880 yen). The monthly fee for the basic plan remains unchanged at $ 8.99 (about 940 yen).

New subscribers will be paid the monthly fee after this price increase. If you have already subscribed to Netflix, you will be notified to switch to the new fee at the time of fee collection two months later, 30 days before collection.

It's not the first time Netflix has raised prices, and Canada has raised prices

twice , in November 2018 and October 2020 . It seems that the price increase in the United States was expected in advance by industry insiders. In addition, Netflix changes the price plan for each country, so the price increase in the United States will not affect users in other countries. There is no change in monthly charges in Japan either.

by

www.quotecatalog.com

The number of subscribers to video distribution services is increasing due to the influence of the pandemic, but at the same time, competition between services is intensifying. It is estimated that Netflix spent $ 18.5 billion (about 1.9 trillion yen) on expanding content in 2020 alone in order to attract customers with various unique contents.

Intensifying competition will improve the content and platforms Netflix offers, but the high costs involved will be reflected in the form of higher monthly fees. At the most recent earnings call in October 2020, COO Peters said, 'We sometimes ask our clients to pay a little more to maintain a virtuous cycle of investment and value imagination.' It suggested a price increase.

Of course, raising the price may increase the number of users who cancel Netflix. However, Netflix thinks that it is possible to stop user churn to some extent by enriching the content, and as a result, the return from the price increase will exceed.

A Netflix spokeswoman told The Verge, an international media outlet, 'Monthly rates have been updated to continue to offer a wider variety of shows and movies.' 'We always have the best price for our budget. We offer a variety of plans to choose from. '