Netflix Subscription Prices Expected to Rise Again This Year: Report

I have a piece of bad news for all the subscribers of Netflix. In the latest report by industry analysts, there is a high probability of Netflix increasing their subscription prices in 2024. This comes not long after the price surge in October 2023. Netflix is increasing subscription prices while trimming down the content from the platform. Recently, it shelved 13 shows including fan favorites like 1899.

Why Is Netflix Increasing Subscription Prices?

According to a report made by Variety, a team led by UBS analyst John Hodulik stated “We expect to see rate increases this year” in a research note dated February 27. According to him, based on the good revenue gain of 7% in the year 2023 for their ad-supported tier, Netflix will most probably try to push up these numbers by 15% in the year 2024.

We are all aware that Netflix increased their prices in October 2023 making the price of their basic plan hike up from $9.99 to $11.99 per month in the United States. Not only the US, but countries like the United Kingdom and France also took the hit seeing an increase in subscription prices. As of now, we do not have an official statement from Netflix but it is pretty much confirmed that a Netflix subscription price hike is inevitable in 2024.

Netflix Co-CEO Greg Peters stated that in the Q4 2023 earnings call, Netflix had “largely put price increases on hold because we saw that as a form of substitute price increase. Now that we’re through that, we’re able to resume our sort of standard approach toward price increases. And price increases, you’ve seen us do that in the US, UK, and France. Those changes went well better than we forecasted.” 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?

The previous rise in Netflix subscription prices, along with a stricter password-sharing rule, has not been seen in a good light by consumers. Even though according to Greg Peters, the increased cost is technically for a better consumer experience in the long run, these rather quick price hikes may make consumers move towards a cheaper option or even a third-party streaming platform.

Even though the new password policy was implemented to promote individual subscriptions, it has become an inconvenience for people or families who use a single account. Users now have to choose between paying more for a personal account or adjusting to new password-sharing rules. These changes show how the streaming landscape is now somewhat exploiting the need for entertainment by raising their prices whenever they wish.