Entertainment

Netflix is Expected to Raise Prices This Year

Netflix continues to dominate the streaming industry, displaying resilience in the face of competition. Despite its popularity, Netflix appears to be gearing up for another price hike this year for subscribers in the US, Canada, UK, and potentially other regions to bolster revenue, according to UBS Securities Analyst John Hodulik.

The recent crackdown on password-sharing, which encouraged users to have their own accounts or pay extra to share, surprisingly led to a surge in subscribers, defying predictions of mass cancellations. However, the company seems intent on further increasing its revenue, as reports suggest it plans to raise prices soon.

The last price increase in 2023 saw the basic plan rise from $9.99 to $11.99 monthly in the U.S. Analysts now anticipate another hike this year, as hinted by Netflix previously. Co-CEO Greg Peters indicated during an earnings call that they had paused price increases during the rollout of the password-sharing program but would resume standard approaches now. Despite concerns about customer pushback, the increases have been well-received, boosting revenue and pleasing shareholders.

Netflix plans to continue monitoring global markets, aiming to enhance entertainment value before implementing further price adjustments. Their strategy is clear: increase prices gradually to invest in more content, maintaining customer satisfaction and financial growth. In essence, it’s business as usual for Netflix as they navigate pricing strategies to sustain their market dominance and expand their content offerings.

Irfan Tariq

My name is Muhammad Irfan Tariq I am currently part of different websites and news agencies. I am interested in… More »

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