Yahoo Lifestyle Netflix is hiking prices for millions of Aussie customers. Here's how much more you'll have to pay
It's going to cost a few more dollars to enjoy some of the biggest TV shows and movies.
Netflix customers in Australia will soon have to shell out more money to enjoy some of the biggest TV shows and movies. The streaming service is increasing subscription prices for the 6.1 million users in the country, with the most expensive tier now costing $25.99 per month.
Customers have three options to choose from when they're getting an account: standard with ads, standard without ads and premium. There's a huge difference between the cheapest and most expensive subscription models and it can limit how many devices can use the account and the video quality.
The price rise comes as research reveals loads of Aussies have been cancelling streaming service subscriptions due to the rising cost of living.
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How much is Netflix going up in Australia and when?
When the new subscription prices kick in will ultimately depend on your bill cycle, but Yahoo Finance understands it'll be rolled out 30 days after customers receive an email about the changes.
Here's how much each subscription tier will go up:
Standard with ads: The current rate is $6.99 per month and it's rising to $7.99
Standard without ads: $16.99 to $18.99
Premium: $22.99 to $25.99
Sarah Megginson, personal finance expert at Finder, said there could be many customers in Australia who might have to say goodbye to Netflix as a result of the price increase.
“As Australians grapple with cost-ofliving pressures, streaming services could be on the chopping block," she said.
“They’re a low-hanging fruit compared to other bigger bills, but price hikes for these once-affordable entertainment options are forcing many people to re-evaluate their subscriptions.
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“With content scattered across various streaming platforms, people are often subscribed to multiple services. They all started affordably at under $10 each per month, but significant increases mean it’s becoming really expensive to remain subscribed.”
Finder interviewed more than 1,000 people as part of a survey into household finances and found 27 per cent cancelled a streaming subscription last year. A whopping 70 per cent of those respondents said it was to save money.
A standard Netflix subscription has more than doubled from $8.99 to $18.99 since it launched in Australia.
Tips to saving money on streaming services
Money expert Joel Gibson said the average household has three to four streaming subscriptions at any given moment.
Many have gone up in price over the last few years, which, if you've got multiple on the go, can put a lot of pressure on your finances.
Here are some of his tips to avoid being stung:
Turn them on and off like a TV: Don't have them all on at once. Subscribe to Netflix and watch a season, then cancel it for a month or three while you watch something on Binge, and so on. Turn Kayo off when the footy season ends. In the US, 1 in 5 customers are now called ‘serial churners’ because they’ve adopted this tactic.
Pick a winner: We’ve adopted this rule in our household: each family member can pick one service at any given time. If they want to sign up to another one, they need to turn their current service off. It just prevents us from signing up to multiple subscriptions and losing track of how many people have their hands in our pockets.
Downgrade: Netflix now has a $8 per month tier with ads and Binge has a $10 per month tier with ads. Similarly, some price hikes such as Kayo and Disney+ have been accompanied by an upgrade to 4K picture quality, but if you’re happy with HD, you can spend less on a lower tier.
Freebies: Don’t forget how many fantastic FREE services there are: ABC iView, SBS On Demand, 9Now, 7Plus, 10Play. You can also binge a lot during the free trial period of paid services, which is up to one month.
Annual discounts: This is only a saving if it’s a service you can’t turn on and off. Amazon charges less if you pay annually, Disney+ gives you a 17 per cent discount and Britbox a 16 per cent discount.
Look for loopholes: A lot of energy plans and telco plans and AFL club subscriptions now include streaming subs. At GWS Giants, for example, a digital membership costs $250 and includes a $300 Kayo sub.
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