Netflix Price Increasing Again Thanks To One Successful Strategy
According to a recent write-up from Reuters, Netflix may soon be raising its prices due to the massive success of the streamer’s recent campaign to crack down on password sharing. After threatening for years to prevent users from sharing accounts across multiple households with friends and family members, the company finally started putting measures in place to curb password sharing last Spring, to the tune of a six-million subscriber boost.
As the only streaming giant currently touting major profits, Netflix may soon announce another price-hike this week when it comes time to report their third-quarter earnings.
Netflix led the way in ending password sharing, and now the streamer is going to increase the price for all plans.
Other streamers, such as Disney+, have followed in Netflix’s footsteps recently by beginning an international crackdown on password sharing in order to recuperate losses. For Netflix, this has meant taking on enough new subscribers to put off increasing their subscription costs, even with most new users signing on to the platform’s cheapest ad-supported tier. The current Netflix price rings in at $15.49 per month for non-ad-supported plans or $6.99 per month with ads.
With the recent crackdowns bringing in millions of new subscribers, analysts have predicted a rise in Netflix prices may soon be announced, especially once the SAG-AFTRA strikes finally come to a close.
Media analysts have further speculated a rise in Netflix prices, specifically for their ad-supported tiers, to push new users toward the more expensive but equally more convenient ad-free tiers in the coming weeks.
As a leading corporate force behind the AMPTP, Netflix was a major holdout in contract negotiations between union heads for both the WGA and SAG-AFTRA since the strikes first began back in May. With the writers now finally returning to work following a successful negotiation, it seems clear that the screen actors will soon reach an agreement with studios as well.
While the strikes were a financial nightmare for most streamers, Netflix was able to mitigate disaster within its catalog by courting a number of international markets and bringing on a host of new talent and recognized IP from creators across the world. German content across the streamer has recently been majorly overhauled, while a host of new anime series‘ have cropped up as well. Now that productions in the United States are set to resume, this could have an adverse impact on the Netflix prices subscribers have become accustomed to.
Media analysts have further speculated a rise in Netflix prices, specifically for their ad-supported tiers, to push new users toward the more expensive but equally more convenient ad-free tiers in the coming weeks. In order to achieve this shift, it is likely that the streamer will begin systematically increasing the quantity and frequency of their ads in order to force those in cheaper plans to pay more out of sheer frustration.
While the strikes were a financial nightmare for most streamers, Netflix was able to mitigate disaster within its catalog by courting a number of international markets and bringing on a host of new talent and recognized IP from creators across the world.
Of course, there’s no way of knowing what will happen with Netflix prices now, as the streamer has made no official announcements regarding an upcoming hike. Still, it seems clear, based on the entertainment giant’s business model, that a price increase is on the horizon, with many other industries raising rates in kind due to rising inflation. For now, all Netflix subscribers can truly do is wait for more updates.
