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For the first time since 2017, Netflix is raising prices for UK subscribers, per The Guardian.
The streaming giant will up the standard plan’s price up by £1 to £8.99 ($11.35) and will raise the premium plan’s price by £2 to £11.99 ($15.14) but will not alter the basic plan’s price of £5.99 ($7.56). Netflix has raised prices across the US in recent months, and in other regions like Latin America and the Caribbean.
Business Insider Intelligence
Higher prices will likely help Netflix defray its massive content production costs, and the streaming giant seems confident that its subs are willing to fund that venture. Not only has Netflix lost licensing deals, but it also faces a new entrant with a robust, loyal fanbase in Disney.
That’s sparked deep investment in creation and production: The company is expected to spend at least $15 billion on content for 2019. Netflix’s advance indicates that the firm feels comfortable passing some of the cost of new content off to its UK subs, and its market position supports that posture: Netflix makes more revenue in the UK than the country’s five biggest home-grown streaming services combined, per media regulator Ofcom.
Netflix generated £693 ($875) million in revenue for 2018, over £150 (around $200) million more than the £530 ($669) million made by Sky’s NOW TV, BBC’s iPlayer, and others.
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See Also:
- How Hollywood giants like Netflix and Disney have reacted to Georgia’s antiabortion law
- 5 fan-favorite TV shows that were recently canceled then saved by another network — and some that are still waiting
- Netflix says it would rethink its ‘entire investment in Georgia’ if an antiabortion law were adopted
Source: Business Insider – feedback@businessinsider.com (Mariel Soto Reyes)