Entertainment

Netflix is reportedly preparing to raise ad-free plan prices soon

Netflix is reportedly plotting to sneakily increase the prices of its ad-free streaming plans.

by
Kevin Raposo
October 3, 2023

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Brace yourselves, Netflix users: the streaming behemoth is reportedly scheming to hike up the prices of its ad-free plans.

According to The Wall Street Journal, this change is expected to kick in a few months after Hollywood’s strike resolution. But, in true cliffhanger fashion, they’ve left us hanging on the details of the new pricing structure and its timeline.

The Journal, which broke the news, cited anonymous sources but did not provide further details on the new pricing structure or its implementation timeline.

Now, you’d think Netflix would step up and give us some clarity, right? Nope. They chose to zip it when asked to comment. Classic move, Netflix.

Currently, the Standard plan, offering two ad-free streams, is priced at $15.49 per month. If you’re on the Premium tier, you’re parting with $19.99 per month for four streams.

Remember the Basic tier that got the axe earlier this summer? That was a strategic move to nudge customers towards the $6.99 per month ad-supported plan or the pricier tiers.

Netflix CFO Spence Neumann, in a recent investor call, stated we’re “more than a year out” from any price hikes in major markets. But let’s not forget the last price surge in the U.S. and other significant markets happened in early 2022.

“Most of our revenue growth this year is from growth in volume, through new paid memberships. And that’s largely driven by our paid-sharing rollout,” Neumann stated during the second-quarter earnings interview. He further added, “It is our primary revenue accelerator in the year.”

And it’s not just Netflix playing this game. Other streaming services are also hiking their prices, probably while twirling their mustaches and cackling maniacally.

For instance, as of October 12, Disney increased prices for the standalone premium tiers of Disney+, Hulu, and ESPN+ in the U.S.

NBCUniversal also implemented its first price increase for Peacock this summer. Similarly, Paramount Global increased the price for its newly merged Paramount+ With Showtime package.

But let’s be fair. Sometimes, these price hikes are necessary for companies to maintain quality and keep churning out the content we binge-watch on lazy Sundays.

So, who knows? Maybe we’ll get more high-quality shows and better services in return.

Have any thoughts on this? Drop us a line below in the comments, or carry the discussion to our Twitter or Facebook.

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