A few corners of the internet lost their minds for a little while earlier this year when reports surfaced that Netflix was testing price hikes in some of its Australian markets. Many Netflix users took to Reddit to voice their frustrations and hint that any price hikes would result in many users cancelling their subscriptions. Some tech news sites even went so far as to call the price hike experiment “the most anti-consumer move Netflix has ever made.” Those same outlets should have a field day with the most recent Netflix news coming out of Canada. According to the CBC, Netflix will soon be raising its monthly fees for new and existing subscribers in Canada.
The CBC reports that Netflix’s standard plan will go up to $10.99, while its basic one-screen streaming-only plan will raise by one dollar to $8.99. The streaming service’s premium plan, which includes support for four simultaneous streams and ultra-HD 4K content, will now cost $13.99 a month in Canada. Netflix issued a statement claiming that the price hikes are necessary in order to provide members in Canada with the best possible services:
From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience, to help members find something great to watch even faster.
Netflix raised prices for American subscribers last year, just before gaining a huge boost in subscribers thanks to Stranger Things and its other popular original series. From a profit standpoint, the time might be right for further hikes given that the streaming leader has announced an incredible lineup of new series for the next few years including some recent high-profile acquisitions. A price hike of a dollar or two might not be enough to deter subscribers, yet could pay off in the form of a massive annual revenue boost. It’s a careful balance, though; subscribers might put up with small, infrequent raises, but with so many other streaming services to choose from, Netflix needs to walk the price point line very carefully.