Netflix announced price increases in the US and other markets in late 2020, and some of those hikes have started being implemented this year.
In America, a standard monthly subscription is going up $1 (about P48) from $12.99 (P624) to $13.99 (P672), while a premium subscription is jumping $2 (P96) from $15.99 (P768) to $17.99 (P865). The base level plan (standard definition) is still at $8.99 (P432).
New users are already being charged with the new rates, but the company has only recently started sending emails to existing subscribers about the new rate.
There’s a similar increase in the UK, with the standard package going up 1 (P65) to 9.99 (P655), and premium subscription jumping 2 (P131) to 13.99 (P917) per month. The base package will remain at 5.99 (P393) per month.
Netflix, the world’s leading video streaming platform, justified the price increase by saying that it is investing heavily in original content. Last week, the company announced that it plans to release at least one movie a week in 2021, featuring A-listers like Dwayne “The Rock” Johnson, Ryan Reynolds, Gal Gadot, Chris Hemsworth, Amy Adams, Lin-Manuel Miranda, Octavia Spencer and, Melissa McCarthy.
"The price increase was a matter of when not if," Bernie McTernan, a senior analyst at Rosenblatt Securities told CNN Business. "It shows they think people will be willing to pay more for the service as the pandemic disrupts content production thus making their vast library more valuable."
But what about the Philippines?
There has been no official word yet from Netflix that it will raise prices in the country just yet. The company has said in the past that price adjustments are on a country-by-country basis and an increase in its home country of the US doesn’t automatically mean an increase elsewhere. But don’t be surprised if the company announces a price adjustment soon.
Netflix currently has four subscription plans in the Philippines: Mobile at P149, Basic at P369, Standard at P459, and Premium at P549.
According to Forbes, Netflix added as many as 26 million new subscribers during the first half of 2020, due mainly to the fact that many people have been sheltering in place due restrictions caused by the coronavirus pandemic. But the growth slowed considerably during the second half of the year, to only 2.2 million in the third quarter.
Netflix had 195.15 million paid subscribers worldwide as of the third quarter of 2020, according to Statista.
Other streaming platforms—like Disney+, HBO Max, are nipping at Netflix’s heels. Disney+ jumped from 33.5 million subscribers in its second quarter to 57.5 million by its third quarter, and surpassing 73.7 million subscribers by the end of the fourth quarter. HBO Max, meanwhile added four million subscribers by the end of the third quarter of 2020, bringing its total users up to 12.6 million activated users from 8.6 million.
Both popular streaming platforms have yet to be available in the Philippines.
This story originally appeared on Esquiremag.ph.
* Minor edits have been made by the Candymag.com editors.