Netflix just announced some big price increases this morning, and it’s really bad news if you live in Europe. The subscription streaming service announced this week that prices will be increasing from €8.99 ($10) to €9.99 ($11) a month. In addition, new subscribers in Switzerland will see prices increase from CHF 12.90 ($13.20). to CHF 14.90 ($15.20). There is a bit of sort-of good news if you already subscribe to Netflix in those areas, however. The new prices are currently only for new subscribers to the streaming service.
Those who have stuck with Netflix for some time now will not see any price changes go into effect for at least a year, which is similar to the plan Netflix put into place when prices went up in the US back in 2014. In the States, prices have already increased from $7.99 to $8.99 a month, and the streaming service has noted those prices are likely to continue to increase in the future. The company is calling the lack of a price hike in Europe for at least a year a "thank you," although it's more of a courtesy than a super thoughtful gesture.
While the European price hike has come later than the US increase, as noted prior, it’s unlikely to be the last time that prices go up. Earlier this year, CEO Reed Hastings stated that as Netflix adds content, the prices will continue to become more expensive.
According to Home Media Magazine, the price hike in Europe was made after Netflix realized that 75% of its new subscribers were actually coming from outside of the United States. As of the latest quarter, the services has 23 million subscribers internationally, with more to come in the future as Netflix opens up new chapters in places as diverse as Spain and Japan. The cost of Netflix is currently low enough that the average household should not be super affected by such small price hikes, although those price hikes are a huge amount in terms of percentages.
Netflix is looking to expand into even more countries as the year wears on. In addition, the company has borrowed a ton of money to create even more original content, from Marvel shows like Jessica Jones to new comedies from the likes of Will Arnett and more. If that original programming continues to lure in new subscribers, you can bet your bottom dollar that more price hikes will be coming, in Europe, the United States and many other countries.
If you are already a Netflix subscriber, enjoy the prices you are paying while they last. In addition, you can find out what Netflix has coming up with our fall TV premiere schedule.
Amazing Race & Top Chef superfan with a pinch of Disney fairy dust thrown in. Theme park junkie. If you’ve created a rom-com I’ve probably watched it.
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