Netflix has once again raised its prices—at least for now in the United States. A notable move at a time when competition is stronger than ever.
Is Netflix slowly but surely pricing itself out of the market, or will competitors simply follow with similar price hikes? That question inevitably arises after yet another increase from the video streaming giant. A standard subscription with ads (!) will now cost Americans $8.99 per month (up $1). The standard plan increases by $2 to $19.99, while the Premium tier will now cost $26.99 per month (previously $24.99).
These are fairly steep monthly fees, especially at a time when many Americans are already struggling financially. Competing streaming services are generally cheaper, which could mean Netflix risks pricing itself out of the market. Whether that will actually happen depends largely on the well-known factor of customer loyalty.