Yahoo Finance Netflix increases prices again as streaming wars gather pace
Netflix is hiking prices for the third time in three years, by as much as 17pc, to underpin its heavy spending on original series and films as the streaming wars intensify.
It will announce on Thursday that its standard and premium packages will rise by £1 to £9.99 and £2 to £13.99 respectively.
The move comes as Netflix spends $1bn (£743m) on British productions this year. Netflix has around 15m UK subscribers, according to research firm BARB, but is facing a fierce battle for viewers from an influx of new streaming services such as Disney+ and Britbox.
A Netflix spokesman said the money spent on UK shows was helping create thousands of jobs and was showcasing British storytelling.
“Our price change reflects the significant investments we’ve made in new TV shows and films, as well as improvements to our product.
“Our basic membership will remain at the same price ensuring as many people as possible can enjoy our content.”
Netflix’s standard and premium plans stream in better picture quality than its cheapest offer and allow subscribers to download shows to more devices.
Channel 5 is in advanced talks to become a shareholder in Freeview after the television mast monopoly Arqiva withdrew its investment.
The broadcaster is understood to still be pursuing a deal with the broadcasting platform’s shareholders, BBC, ITV and Channel 4. The move comes after Arqiva announced it was stepping down as an investor on Tuesday.
The Sunday Telegraph reported in October that Channel 5 may pass up the chance to become a Freeview investor because it could not justify the cost during the pandemic.
An industry source said there was “a lot of merit for all parties” in getting a deal done.
A Channel 5 spokesman said it was a “strong supporter” of Freeview and the platform will “play a vital role in the future of public service broadcasting”.
