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Netflix Raises Subscription Prices

Netflix has decided to raise its monthly subscription fees for 2022. Will this give cover for other services to raise theirs too?

Netflix Homescreen Featuring Money Heist TV Series

Netflix, with over 200 million worldwide subscribers is the largest streaming service. The company is reportedly worth almost $289 billion dollars. In 2020 (the latest year figures are available), Netflix took in over $25 billion dollars in revenue and spent over $13.6 billion dollars in content creation and acquisition. Of course, there are additional expenses including personnel, marketing, etc…

Netflix is also in the process of trying to purchase the vacant Ft. Monmouth property on the Jersey Shore to build a massive movie and television production studio outside of New York City.

EIC Ian White lives less than 2 miles from the proposed site and reports that the State of New Jersey and the authority that manages the vacant base which stretches from Exit 105 on the Garden State Parkway in Tinton Falls to West Long Branch, Oceanport, and Long Branch has to make a decision on the Netflix bid this month. The studio bid between $70 – $90 million for the 300 acre site and the planned investment could exceed $200 million.

Netflix Logo

With that in mind, Netflix is claiming that in order to continue to offer both the quality and quantity of content that a subscription price increase is justified. 

In addition to all the content, Netflix recently added online gaming

On the other side of the coin, many Netflix subscribers are getting increasingly frustrated with their habit of canceling seemingly popular shows after one or two seasons.

Also, if you subscribe to several streaming services, those dollars can add up, especially if services like Disney+ and Apple TV+ which are less than half the price of Netflix (albeit with less original content) will see this as a chance to up their subscription fees. Refer to our report on the cost of several streaming service subscription fees.

Here is how the Netflix subscription plans break down in both cost and features:

Netflix Plan FeaturesBasic PlanStandard PlanPremium Plan
Price per month$9.99
(Up from $8.99)
(Up from $13.99)
(Up from $17.99)
HDR/Dolby VisionNoNoYes
(When available)
Dolby AtmosNoNoYes
(When available)
Number of Screens you can watch at the same time.124
Number of phones/tablets you can store Netflix  downloads on124
Unlimited Movies, Shows, and GamesYesYesYes
Watch on TV, Laptop, Phone/TabletYesYesYes

The above price increases apply to new members. However, they will gradually take effect for all members except those that change their plan during this time period. If you are a current member you will receive an email notification 30 days before your price changes,

NOTE: Netflix does not offer free trials. 

Internet Speed Requirements

Netflix suggests the following internet connection speeds:

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  • 0.5 Mbps minimum 1.5mb/s recommended for SD resolution (480p) on a laptop computer. 
  • 3.0 Mbps SD (480p) on a TV.
  • 4.0 Mbps HD (720p/1080p). 
  • 5.0 Mbps or more for best Full HD (1080p) quality.
  • 25 Mbps UHD (4K, 2160p).

Netflix automatically adjusts video quality based on your internet speed. For example, if you subscribe to the Premium Pan and your internet speed is not fast enough for 4K, Netflix will default to HD or SD resolution to avoid freezing and buffering. This means video quality is reduced. Keep this in mind if are considering signing up for the Premium Plan.

Netflix doesn’t work on 2010-11 or earlier model year Samsung Smart TVs, 2012-2014 Vizio Smart TVs running Internet Apps/Apps Plus, and select older Roku media streamers. 

Additional Netflix Resources:

How To Sign Up for Netflix

Netflix Payment Options

You May Have To Pay Taxes 

How to Change Netflix Plans

How to Cancel Netflix

How To Sign Up for the Netflix DVD/Blu-ray Disc by Mail Service (Yes, you can still rent DVDs and Blu-ray discs by mail)

Related reading:

Does Cutting the Cord Make Sense Financially?

Podcast: VOD and the Future of Movies Post-COVID

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