Netflix ups prices in Europe

Netflix CEO Reed Hastings

Netflix has increased the price of its service for new subscribers in some parts of Europe, citing costs required to build its content library.

The US streamer has raised the cost of its HD plan that allows users to watch video on-demand on two devices to €9.99 (US$11.04) per month, up €1 from €8.99.

The price hike – trailed by CEO Reed Hastings last month – will affect new subscribers in most of parts of Europe where Netflix currently operates, such as Germany, Austria, France, Ireland and the Netherlands.

In Switzerland, the price for the HD two-screen plan has increased to CHF14.90 ($15.29), up from CHF12.90.

The price for the same subscription in the US currently stands at $8.99 per month following a US$1 increase last year.

“In order to continue adding more TV programmes and films, we are increasing our price for new members,” Netflix said in an email sent out to subscribers this week.

Current subscribers will not be affected for at least 12 months as a result of being a “valued Netflix customer,” the company added.

In the UK the same plan rose by £0.50 ($0.78) to £7.49 ($11.75) per month earlier this year, while prices also went up in Scandinavia.

The price increases come as Netflix continues to expand across Europe, with Italy, Spain and Portugal next up – alongside its first official move into Asia, with a Japanese launch set for September 2.

Meanwhile, Netflix is continuing its concerted push into exclusive programming and films, with a recent announcement for a Christopher Guest feature following on from a host of other original commissions.