Netflix has just announced a price increase for its US subscribers, raising the cost of a Standard plan to $14 (P678) a month, and its Premium plan to $18 (P872) per month.
In the US, the new price of a Standard plan is $1 more (up from $13) while the Premium package that features perks like 4K resolution, HDR image quality and the ability to stream on four devices simultaneously, is $2 more expensive (up from $16) per month.
But the most affordable Basic subscription, which streams at DVD-quality 480p and limits streaming to one device only, remains at $9 (P436) per month.
The new prices will take effect immediately for new members, while current accounts will be notified over the next few months.
Earlier this year, Netflix also increased prices in Canada. The price hikes came at a time when the streaming service is investing heavily on acquiring new content and products, spending an estimated $18.5 billion in 2020 alone, according to Bloomberg.
In an interview published in US tech website The Verge, the streaming giant likewise emphasized that prices changes are rolled out on a country-by-country basis and the change “in the US does not influence or indicate a global price change.”
Meanwhile, music and podcast streamer Spotify also confirmed that it plans to increase prices in the near future.
During the company’s third quarter announcement, Spotify co-founder and CEO David Ek commented that “I believe an increase in value per hour is the most reliable signal we have in determining when we are able to use price as a lever to grow our business.”
Earlier this year, the price of Spotify Family Plans has increased around the world in countries such as Belgium, Switzerland, Bolivia, Peru, Australia, Ecuador and Colombia. There has been no word yet when the US and Asian markets would be affected, as the company didn’t divulge when this could happen or in what markets.