Netflix is raising prices... again

1/18/22 7:00PM

Netflix and chill is not immune to inflation. This week the streaming giant announced that the cost of its monthly plans are set to rise. Netflix's premium package, which gives you 4K quality and more screens, is now set to cost almost $20 a month.

Thanks to some great historical research from our friends at The Verge, we can see that the premium package price is now up 66% since 2013, when it was just ~$12 / month.

The bigger picture

We've charted before about how Netflix is running out of places to grow its subscriber base. In the US & Canada growth has slowed down to a trickle — meaning that Netflix has to find other ways to boost its revenue there. Price rises are the easiest.

A 10% price rise might cause a few cancellations, but it's unlikely to be anywhere near the same proportion of their customers which means this won't be the last Netflix price hike.

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JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.