Netflix & Bill: Subscription Prices Expected to Rise Again This Year

Netflix & Bill: Subscription Prices Expected to Rise Again This Year - News - News

Netflix Subscribers Brace for Another Price Hike in 2024

Netflix subscribers may face an unwelcome surprise next year as the streaming giant is reportedly considering raising subscription prices once again. A research note from UBS analyst John Hodulik, dated February 27, suggests that a price increase is “expected” in 2024.

UBS Analyst Anticipates Further Subscription Price Hikes

“We expect to see rate increases this year,” Hodulik stated, pointing out that Netflix’s ad-supported tier saw a revenue gain of 7% in 2023. Based on this, Hodulik predicts that Netflix might push up these numbers by approximately 15% in 2024.

Netflix’s Price Surge in October 2023: The First Round

It is important to note that Netflix had already increased its prices in the US, UK, and France in October 2023. The basic plan’s price hike was from $9.99 to $11.99 per month in the US, while countries like the UK and France also experienced a price increase.

Another Netflix Price Hike: An Inevitability in 2024?

Although Netflix has not officially confirmed the price hike, it seems inevitable based on previous statements. During the Q4 2023 earnings call, Netflix Co-CEO Greg Peters mentioned that “we’re able to resume our sort of standard approach toward price increases.” He also acknowledged that the previous price increase was received less favorably by consumers.

Impact of Previous Price Hike and New Policies on Consumers

The previous Netflix price hike, along with the new password policy, has not been met positively by consumers. Although Greg Peters stated that these changes were for a better long-term consumer experience, frequent price increases and new policies may push consumers towards cheaper alternatives or third-party streaming platforms.

Adapting to the Changing Streaming Landscape

As the streaming landscape evolves, companies like Netflix are making changes that might be viewed as exploiting consumers’ need for entertainment. The new password policy and price hikes have become inconveniences for some, forcing them to make a choice between paying more or adjusting to new rules.