I have some unfortunate news for Netflix subscribers. Industry analysts suggest that Netflix may raise its subscription prices again in 2024, following a recent price surge in October 2023. Despite this, Netflix is also reducing its content offerings, having recently canceled 13 shows, including popular titles like “1899.”
What’s Behind Netflix’s Subscription Price Increases?
According to a report from Variety, a team led by UBS analyst John Hodulik stated in a research note dated February 27 that “they anticipate rate increases from Netflix this year“. Hodulik noted that Netflix experienced a 7% revenue gain in 2023 for their ad-supported tier and predicts that the streaming giant will aim to increase this number to 15% in 2024.
It’s common knowledge that Netflix raised its prices in October 2023, with the basic plan jumping from $9.99 to $11.99 per month in the United States. This increase also affected subscribers in countries like the United Kingdom and France. While Netflix has yet to release an official statement, it’s widely believed that a subscription price hike is inevitable in 2024.
During the Q4 2023 earnings call, Netflix Co-CEO Greg Peters mentioned that “the company had temporarily halted price increases but is now returning to its standard approach. He highlighted the positive reception to price hikes in the US, UK, and France, indicating a willingness to raise prices in other countries to continue investing in new content.” He also added:
“We will continue to monitor other countries and try and assess… when we’ve delivered enough additional entertainment value to ask to pay a bit more to keep that positive flywheel going and we can invest in more great films, series and games for those members. So, you know, the summary statement might be, ‘Back to business as usual.’”– Greg Peters
How Does This Affect the Consumer?
Consumers have not reacted positively to the recent increase in Netflix subscription prices and the stricter password-sharing rule. While Greg Peters argues that the price hike is intended to enhance the consumer experience, these rapid increases could drive consumers toward more affordable options or third-party streaming platforms.
The new password policy, aimed at encouraging individual subscriptions, has instead inconvenienced people or families sharing a single account. Users now face a choice between paying more for a personal account or adapting to the new password-sharing rules. These developments reflect a trend in the streaming industry where prices are raised at will, potentially taking advantage of consumers’ need for entertainment.
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