Netflix Price Hike Explained as Streamer Eyes More Licensed Shows Following Suits Success

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There are some more changes at Netflix, and yes, the streamer is asking subscribers to part with some more money.

Netflix announced Wednesday some changes to two of its most popular plans.

Let's Talk - Suits

What Will Netflix Cost After New Price Rises?

The streaming service's most expensive plan, Premium, will increase from $19.99 to $22.99 monthly.

Jamie McShane on Wednesday

The primary, advertising-free plan will surge from $9.99 to $11.99 monthly.

Two of the four services offered by the home of Stranger Things will remain the same.

The standard plan with ads will remain at $6.99, while the ad-free equivalent will still set you back $15.49.

Related: Stranger Things Season 5: Everything We Know

Eyeing up the Competition on Wednesday


While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more," the company said in its third-quarter shareholder letter.

Netflix Adds a Lot of New Subscribers in the Year's Third Quarter

Netflix also announced Wednesday that it added nine million subscribers in the third quarter, which also helped contribute to year-over-year revenue.

The subscriber increase is interesting because the crackdown on password sharing and the rise of the cheaper ad-supported plan are paying off.

Man & Wife - Ginny & Georgia Season 2 Episode 10

Related: SEAL Team Season 7: Everything We Know

Netflix has reached 247 million subscribers worldwide, a surefire sign that things are moving in the right direction.

The Rise of Ad-Supported Streaming

Ad-supported tiers appear to be becoming more popular across streaming services as ad-free plans continue to increase in price.

The numbers also come from when there was a dual Hollywood strike, with both the WGA and SAG-AFTRA on strike.

Getting Closer on Wednesday

The WGA strike has been resolved, but talks recently broke down between SAG-AFTRA and the AMPTP.

During an earnings call Wednesday, Ted Sarandos, the company's co-chairman, said that Netflix is "incredibly and totally committed to ending this strike."

Related: Wednesday Season 2: Everything We Know

However, he added that "a subscriber levy that is unrelated to viewing or success" asked for by SAG-AFTRA "really broke our momentum."

The Biggest, Baddest Operator - Tall  - Pearson Season 1 Episode 9

The Suits Effect

While it was expected that scripted originals on the streaming services would begin to be exhausted due to the strikes, one of Netflix's biggest hits of the year was an acquisition from NBCUniversal.

Yes, we're talking about Suits. The legal drama, starring Meghan Markle, spent 12 weeks at the top spot of the Nielsen streaming chart.

The series broke records and staged a rare renaissance four years after its finale.

Darvey's Last Stand - Suits Season 9 Episode 10

It was so big on Netflix that NBCUniversal is now prepping a new entry in the franchise that is said to feature none of the original stars.

It will be comparable to a new NCIS or FBI entry in that it would be a new location with a new ensemble.

It's practically unheard of for a show to stage this kind of comeback in pop culture, but Netflix hopes that more licensed shows can pull off a similar trick.

Alex Williams Close up - Suits Season 7 Episode 3

In recent years, Netflix has been laser-focused on its original series, but Suits has seemingly made the company realize that other shows could reach that level of success.

"This legal drama originally premiered on USA Network in 2011 and ran until 2019," the company said in its results, according to Deadline.

"Despite having been available on other streaming services, the debut of seasons one to eight on Netflix in July broke viewing records," it noted.

Playing All the Cards - Tall  - Pearson Season 1 Episode 9

"Licensing has always been an important part of our programming strategy," Netflix adds.

Related: Suits Netflix Success Leads to Franchise Expansion

"As the competitive environment evolves, we may have increased opportunities to license more hit titles to complement our original programming.

We believe this will deliver additional value for our members (i.e., engagement), as well as for rights holders who benefit from the increased awareness and revenue that Netflix delivers, in addition to the new life that success on Netflix can drive."

Sulking it Out - Suits Season 9 Episode 10

"We can't make everything but we can help you find just about anything," said Sarandos.

What Netflix Originals Are Coming This Year?

Netflix has plenty of offerings on the way during the final quarter of the year, including the sixth and final season of The Crown.

The first four episodes are set to air on Thursday, November 16, 2023.

Imelda Staunton on Season 6

The final six will be available on Thursday, December 14, 2023.

Yes, it seems like the split-season strategy is paying off, so they're here to stay.

The penultimate season of Elite is set to premiere on October 20, with an eighth and final season confirmed for 2024.

What are your thoughts on the rise?

Are you surprised?

Hit the comments.

Paul Dailly was an Associate Editor for TV Fanatic.Follow him on X.

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