While Netflix has been busy rolling out paid account sharing options over the last year, the streaming giant has also scaled back price increases it wanted to implement. “We saw[paid sharing]as a form of alternative price increase,” said Greg Peters, the company’s co-chief executive officer. But now that these account sharing options are in place, you never know what will happen next.
Peters continued on Netflix’s latest quarterly earnings call. “Now that we’ve gotten through that, we can resume our standard approach to price increases.” And indeed, analysts at UBS Securities said today that Netflix’s price will rise at least once this year. They published a research note containing this prediction. “We expect rate hikes this year,” a Feb. 27 research note from UBS analysts led by John Khodulyk said, adding that the hikes are part of a larger structural shift taking place at media companies. be exposed.
UBS analysts go on to say, “New strategies include 1) price increases, 2) platform consolidation, 3) library curation (with associated asset write-downs), and 4) content spending reductions ( (adjusted for a reduction in strike-related content).” 2023), and 5) Refocus content licensing. ”
The last time Netflix raised its prices was in October 2023, after the end of the Hollywood writers’ strike. The Basic plan is no longer available to new subscribers and has been increased by $2 to $11.99. The price of the Premium plan increased by $3 to $22.99, but the price of two other plans remained unchanged (Standard and Standard plans with ads remained $6.99 and $15.49, respectively) was). By the way, these price increases were also carried out less than two years after the previous price increase (January 2022).
For Netflix, the only way these relentless price hikes will work is if customers continue to generally feel like they’re getting their money’s worth. And of course, there is no one-size-fits-all answer to that question. For some, a steady stream of new shows and movies added every week is a happy perk. For others, the cancellation of a favorite show or the realization that there is too much wasted material in the library can make them anxious or have no choice but to cancel.
As for what’s coming next for the streamer in terms of content later this year, subscribers are getting dozens of major new shows, including a new season of. bridgerton, squid gameand diplomata new movie starring Zack Snyder Rebel Moon – Part 2: ScargiverEddie Murphy makes his long-awaited return as Axel Foley. Beverly Hills Cop: Axel F.and hitmanIn , Glen Powell plays a fake hitman working for the police.
