Spellogy

Class #003/2020 - Netflix Increases Prices for Some US Customers


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Netflix Increases Prices for Some US Customers

Netflix has announced that it is increasing the price of its Standard and Premium subscriptions for US customers.

Standard subscriptions now cost $14 a month, a $1 increase, and Premium subscriptions cost $18 a month, a $2 increase. Basic subscriptions will not change from $9 a month.

The price changes will affect new customers immediately, and customers who already have a subscription will start paying the higher price in the next few weeks.

A Netflix spokesperson told The Verge that the company is raising its prices "so that we can continue to offer more variety of TV shows and films." At the start of the year, experts expected Netflix to spend more than $17 billion making new shows and movies in 2020.

Netflix also increased prices for customers in Canada and Australia in October. US customers had a price increase in 2019, too, when prices for all subscriptions went up by $1 or $2.

Netflix has gained a lot of new customers as people spend more time at home because of the coronavirus pandemic. The company got more than 28 million new customers in the first nine months of 2020 — more than the total number of new customers it got in all of 2019. The company now has more than 195 million customers in total.

Netflix's prices are higher than those of many of its competitors, however. Disney+ costs $7 a month in the US, while Hulu costs $6 a month for its basic subscription, or $12 a month to see shows without advertisements.

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Vocabulary

Premium - more expensive or of better quality

Subscription - an agreement to receive a service, publication, etc. regularly by paying in advance

Spokesperson - a person whose job is to speak for an organization in public

Variety - the state or quality of having many different people or things

Competitor - a person or business that is trying to be more successful than others

Discussion
  • Do you use any streaming services?
  • If so, have they gotten more expensive since you started using them? If not, why not?
  • Do you think streaming services will eventually replace traditional TV?
  • What's the last TV show you watched? Would you recommend it?
  • If you could only watch one TV show for the rest of your life, which would you choose and why?
  • Have you binge-watched many TV shows?
  • What upcoming movies or TV shows are you looking forward to?
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    SpellogyBy Kilton Fernandes