Renowned financial expert Martin Lewis has issued a warning to UK consumers about the recent price hike by streaming giant Netflix. However, he also offered valuable advice on how to save money despite the increase in subscription fees.
Price Jump: Brits to Pay £24 More per Year
Netflix has announced an increase in prices for British subscribers, which could potentially cost users an additional £24 per year. The basic plan will now be priced at £7.99 per month, while the premium plan will cost £17.99 per month.
This means that those on the basic plan will experience a £12 annual increase, while premium plan subscribers will have to pay £24 more each year.
Martin Lewis Offers Money-Saving Tips
Despite the price hike, Martin Lewis has shared some valuable advice on how to cut costs when using Netflix. He took to X, previously known as Twitter, to inform his followers about the situation and shared a link to his Money Saving Expert page.
One of the suggestions Martin offered was for users to consider switching to a cheaper subscription plan. According to Money Saving Expert, if subscribers don't need to stream on four screens or download on six devices, it may be worth downgrading to a standard plan. This change could save users £7 per month.
Another option mentioned was sharing an account with a family member or friend who lives in the same household. The standard Netflix plan allows streaming on two screens simultaneously, without the need to watch the same content. By splitting the cost with someone else, users can enjoy ad-free, HD streaming for just £5.50 per month. If there are two or three others in the household who use Netflix, splitting the premium plan (£17.99 per month) can lead to even more significant savings, with each person paying just £6 or £4.50 per month.
Netflix's Growing Popularity and Revenue
Despite the potential backlash from customers due to the price hike, Netflix continues to experience significant growth. Between July and September of this year, nearly nine million households subscribed to the streaming platform, marking the largest increase since the early days of the Covid-19 lockdowns in 2020.
It's worth noting that the ad-supported and standard subscription costs remain unaffected by the recent price change.
Netflix's decision to raise prices comes amidst an ongoing strike by actors, who are demanding better pay and the protection of their likeness from being used by AI in perpetuity.
The company, which earned $8.5 billion in revenue in the third quarter of this year, expects to generate another $8.7 billion in the final quarter. Netflix attributes some of its recent success to the immense popularity of the anime live-action remake, One Piece.
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