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Netflix hints at future price increases in shareholder letter

Here we go again.

Netflix logo showing on the tv screen on purple background
Image: KnowTechie

Netflix has been making headlines with its Q4 2023 earnings report, and while subscriber growth is exploding (in a good way), there’s a more pressing narrative for consumers: price increases and the looming retirement of the Basic plan.

As Netflix’s ad-supported tier catches more eyeballs, the company has announced plans to sunset its Basic membership tier—previously the most budget-friendly ad-free option.

This shake-up in subscription options is set to begin in Canada and the U.K. this spring, with other regions likely to follow suit.

The move indicates a significant shift in Netflix’s strategy, potentially pushing subscribers towards its ad-supported offering or encouraging them to level up to pricier plans.

Plan NameMonthly PriceScreensDownloadsAdsUltra HD
Standard with Ads$6.992NoYesNo
Standard$15.492Yes (2 devices)NoNo
Premium$22.994Yes (4 devices)NoYes

This change comes amid a broader conversation about the cost of streaming entertainment. Netflix’s leadership, in a subtle nod within their shareholder letter, has suggested that the price tag for its service could climb in the future.

The rationale?

As Netflix pours funds into improving and expanding its offerings, it anticipates asking members to chip in a bit more to reflect these “enhancements.” This is a classic business move: as the value proposition grows, so does the cost to consumers.

For subscribers, this means keeping an eye on their monthly bills and weighing the value of Netflix’s ever-growing content library against the increased expense.

And for the industry, it raises questions about how pricing strategies might evolve in the highly competitive streaming market.

I don’t know about you all, but this seems like a good time to reconsider your Netflix subscription. And if you decide to give them the axe, here’s a good place to start.

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Kevin is KnowTechie's founder and executive editor. With over 15 years of blogging experience in the tech industry, Kevin has transformed what was once a passion project into a full-blown tech news publication. Shoot him an email at kevin@knowtechie.com or find him on Mastodon or Post.

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