Netflix ups subscription prices, adds price tiers

Netflix is imposing a blanket price increase for its basic service in the 41 territories it currently operates from today, at the sametime as introducing new subscription tiers.

The subscription streaming service will up the price of its standard HD-quality service in the UK from £5.99 to £6.99. However, existing subscribers will be exempt from the price increase for a two-year period.

At the same time a Netflix spokesperson confirmed that it is introducing a new £5.99 (€7.30) plan that will allow viewers to access SD-quality content, as well as an £8.99 offering that will give subscribers access across four screens – dubbed its ‘super HD option.’

The new three-price structure will be replicated in Ireland, where the standard option, previously priced at €7.99, will go up to €8.99. The SD and multiscreen options here will be introduced at prices of €7.99 and€11.99.

Across the rest of Europe and its international markets Netflix will impose price changes along the same lines, with the standard service going up in each market by the same approximate margin.

“Prices in US are not yet announced. But expect them to be inline with other price rises,” a Netflix spokesperson said. An official blog post announcing this is expected out of the US later today.

Netflix first said last month that it will increase its base monthly rate for new subscribers later this quarter by “a dollar or two”.

In its letter to shareholders announcing record revenue for Q1 2014, Netflix said a price increase trial in Ireland from €6.99 to €7.99 a month had resulted in “little impact” to subscriber numbers, and therefore an increase was now forthcoming for subs in all territories, with the amount varying in each country it operates in.

“As always, members can change plans at any time without penalty or commitments.  New members get a free trial of whichever plan they prefer,” said Netflix.