Netflix reportedly is testing a price hike in Australia; trial could lead to U.S. price hikes

by Alan Friedman

May 15, 2017, 7:01 PM

Netflix reportedly is testing a price hike in Australia; trial could lead to U.S. price hikes

Streaming video site Netflix could be soon be hiking its monthly subscription fees. Tests are being done in Australia where new subscribers who sign up on weekends will pay as much as $AU3 more for membership. New Netflix members will now pay AU$9.99 a month for the Basic plan, up from AU$8.99. The Standard plan will rise from AU$11.99 to AU$13.99 monthly, and the Premium plan goes from AU$14.99 to AU$17.99 a month. Each Australian Dollar is worth 74 U.S. cents.

The Basic plan allows one screen at a time to access Netflix. With the Standard plan, two screens can access Netflix at the same time, and video is streamed in HD. The Premium plan allows viewers to stream in UHD, and as many as four screens can use the service at the same time.

If we use approximately the same percentage price hikes being tried out in Australia, and apply it to U.S. pricing, we could see the rate for the monthly Basic plan go to $8.99 from the current $7.99. The Standard plan would rise to $11.99 a month, and the Premium plan could see a hike to $14.99 monthly. These rates are based on keeping the same pricing format of $XX.99.

While Netflix confirmed that the pricing test is taking place in Australia, the company couldn't say if the price hikes will stick, or even if they will take place in other countries.

"We continuously test new things at Netflix and these tests typically vary in length of time. In this case, we are testing slightly different price points to better understand how consumers value Netflix. Not everyone will see this test and we may not ever offer it generally."-Netflix spokesman

Speaking about Netflix and Australia, we recommend that those who like drama start binge watching Wentworth. This is a show that takes place in a fictional woman's prison in Australia. Several members of the cast have won awards in the country for the show.

source: BGR

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15 Comments

11. pongkie

Posts: 663; Member since: Aug 20, 2011

as long they create high quality originals I may hold on for a while

posted on May 16, 2017, 1:49 AM 0

10. therealestmc

Posts: 680; Member since: Jul 23, 2012

I wished my paycheck would go up with inflation as well. Must be nice.

posted on May 15, 2017, 11:07 PM 1

6. Dr.Phil

Posts: 2572; Member since: Feb 14, 2011

I don't see why Netflix would need to raise the rates in the U.S. considering according to the current exchange rate the base $7.99 rate U.S. subscribers pay is equal to $10.77 in AUD. That would place it above even the new rate hike to $9.99 AUD.

posted on May 15, 2017, 9:35 PM 0

7. Subie

Posts: 2467; Member since: Aug 01, 2015

Yup, but they're not saying that they need too. My take away from this article is Netflix seeing if they can get away with charging more. With inflation prices will eventually go up anyway, but I can see why they would want the extra cash now.

posted on May 15, 2017, 10:00 PM 0

5. tempdogg74

Posts: 136; Member since: Jan 04, 2009

Go ahead Netflix. And watch how many Subscribers u lose.

posted on May 15, 2017, 9:06 PM 5

9. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

At the end of the day it's not about the number of subs, it's about how much $$$ Netflix makes at the end of the month. If PA got the prices right than Netflix can lose up to 20% of their subs and break even, in other words if more than 80% of the current subscribers stay then they will make a profit from the price hike and if not then we will see Netflix change the prices right back. This assuming the prices even change at all.

posted on May 15, 2017, 10:55 PM 0

4. bucky

Posts: 3797; Member since: Sep 30, 2009

If Netflix raises prices, I'm out. The content is not nearly good enough. Already not happy that I wasn't grandfathered in before the previous rate hike.

posted on May 15, 2017, 7:54 PM 4

2. artificialintelligence

Posts: 166; Member since: Dec 05, 2015

Kodi+firestick = free entertainment only suckers pay for subscriptions

posted on May 15, 2017, 7:38 PM 3

3. bucky

Those work half of the time. Especially when you're trying to show someone. Stremio is where it's at or pay for ip tv if your internet is strong.

posted on May 15, 2017, 7:53 PM 1

1. lyndon420

Posts: 6938; Member since: Jul 11, 2012

For how much I use Netflix I'm surprised that I'm not already paying $20 per month.

posted on May 15, 2017, 7:36 PM 2

8. Arch_Fiend

IKR, $15 is more than fine by me.

posted on May 15, 2017, 10:47 PM 0

12. vincelongman

Posts: 5827; Member since: Feb 10, 2013

As long as they don't fully block root users I dont mind blocking root users from installing from the PlayStore since I can sideload But if they switch to SafetyNet or something more thoroughly cancel (I know there's Magisk, but its just a matter or time before they block that too)