I have some unfavorable news for every Netflix user. According to a recent estimate by industry experts, there is a significant likelihood that Netflix will raise its membership fees in 2024. This occurs shortly after the October 2023 price spike. Netflix is raising the cost of its subscriptions while decreasing the amount of material available on the service. It just shelved thirteen episodes, including 1899, a beloved series.
Why Is Netflix Raising the Cost of Subscriptions?
As per the findings of Variety, a group headed by UBS analyst John Hodulik declared A research note dated February 27 said, "We expect to see rate increases this year". Based on the strong revenue growth of 7% for their ad-supported tier in 2023, he predicts that Netflix will aim to increase these figures by 15% in 2024.
| Year | US Price (USD) | UK Price (GBP) | France Price (EUR) |
|---|---|---|---|
| 2021 | $8.99 | £5.99 | €7.99 |
| 2022 | $9.99 | £6.99 | €8.99 |
| 2023 | $10.99 | £7.99 | €9.99 |
| 2024 (From Oct 2023-Till Now) | $11.99 | £8.99 | €10.99 |
As everyone knows, Netflix raised its pricing in October 2023, increasing the cost of its basic plan in the US from $9.99 to $11.99 per month. In addition to the US, other nations that suffered from rising membership costs included the UK and France. Although Netflix has not yet made an official declaration, it is very certain that the price of a Netflix membership will increase in 2024.
During the Q4 2023 earnings call, Netflix Co-CEO Greg Peters said, "We saw that as a form of substitute price increase, so we largely put price increases on hold." After getting past it, we may return to our fairly normal strategy for raising prices. And we have raised prices in the US, UK, and France, as you have seen. The adjustments worked far better than we had anticipated. He also mentioned:
"We'll keep an eye on other nations and attempt to determine when we've provided enough extra entertainment value to request a little bit more in order to maintain that positive flywheel so we can continue to invest in more fantastic movies, TV shows, and games for those members. One such summary might be, "It's back to business as usual."- Gregory Peters
What Impact Does This Have on the Buyer?
Customers did not see the prior increase in Netflix membership costs favorably, nor did they view the stronger password-sharing rule. Greg Peters claims that while the higher price will ultimately result in a better user experience, customers may choose to switch to a less expensive choice or even a third-party streaming platform as a result of these abrupt price increases.
The new password policy has become a hassle for individuals or families who utilize a single account, despite the fact that it was put in place to encourage individual memberships. Users now have to decide whether to accept the new password-sharing guidelines or pay more for a personal account. These modifications demonstrate how the streaming industry is now partially taking advantage of people's demand for entertainment by boosting costs anytime they like.