The hugely popular streaming company Netflix is set to increase its monthly subscription rates. It has recently emailed subscribers to tell them about the monthly price rise.
The move comes after Netflix chief executive Reed Hastings admitted last week it had lost 200,000 subscribers in the first quarter of 2022, the first decline it had experienced in more than a decade. It saw the share price of the company fall by around 35%.
Explaining the move to up subscription rates, the company wrote: "We hope you’re enjoying everything Netflix has to offer. We’re updating our prices to bring you more great entertainment. This update will allow us to deliver even more value for your membership – with stories that lift you up, move you or simply make your day a bit better."
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Netflix said the basic and standard plan will both increase by £1 a month to £6.99 and £10.99 respectively, while the premium tier will go up by £2 to £15.99.
The streaming giant has said that the price changes will allow it to “continue investing in best in class UK productions” and “offer a wide variety of curated quality shows and films” to customers, reported WalesOnline.
A Netflix spokesperson said: “We have always been focused on providing our members both quality and clear value for their membership. Our updated prices reflect the investment we have made in our service and catalogue, and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry.
“We offer a range of plans so members can choose a price that works best for them.”
In Ireland, the basic plan will increase by one euro and two euro for the Standard and Premium tiers, respectively. The price change is immediate for all new members, while existing members will be notified by email 30 days before they come into effect, depending on their specific billing cycle.
The UK is Netflix’s biggest production hub outside the US and Canada, with a one billion dollar UK production budget in 2020.
