Netflix price hikes in other countries could be sign the UK is next

Netflix subscription costs in the UK could rise in the coming months. The streaming giant has been raising prices in other countries, as growth spurred by its crackdown on users sharing passwords has started to fade.

It had already hiked subscription fees in Japan and parts of Europe as well as the Middle East and Africa over the last month. Now, the firm, which had a major success with earlier this year, is rolling out changes in Italy and Spain. In the past, has sometimes experimented with pricing in smaller countries before making changes in major markets, such as the UK and the US.

In its latest results, Netflix announced that it had added 5.1 million subscribers between July and September - ahead of forecasts. However, this is its smallest gain in more than a year, and the firm has found itself under pressure to show to investors what could power growth in the coming years.

Netflix has added more than 45 million new members since last year and has 282 million subscribers globally, however with so many subscribers already adding new ones is tricky.

The UK has 17.1 million households subscribing to Netflix. In October 2023, the basic plan increased from £6.99 to £7.99 per month, and the premium plan increased from £15.99 to £17.99 per month.

However, new or returning subscribers can't access the £7.99 plan and either have the option of a £4.99 standard with ads plan per month, while the Standard plan without ads costs £10.99 monthly.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Netflix's strong financial position put the firm in a position to keep spending money to make new hits, if it raises prices without a backlash.

He said: "This is inherently a fickle market, with consumers happy to swap streamer if they don’t think they’re getting value," he said. "The addition of fresh content is key to that, especially in areas like sporting events, and could give Netflix the edge it needs to push prices higher and keep customers coming back for more.” Netflix was contacted for comment.

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