About the Netflix is not satisfied with the current price level, we have known for a long time. In November 2022, the company introduced an advertising layer, which was supposed to be a cheaper alternative to existing subscriptions. However, interest in this option turned out to be weak.
Paying for upgrades?
In the latest quarterly report Netflix confirmed that it plans to raise prices. “We will occasionally ask our users to pay a little more to reflect these improvements, which in turn helps fuel a positive flywheel of additional investment to continue to improve and grow our service,” company officials wrote.
What improvements are we talking about? Netflix announces that it will invest in new content, including live entertainment. This week, the company announced that the show will be available on Netflix in 2025 WWE’s Raw.
In addition to live entertainment, Netflix also plans to increase production of original series and films. This year, the company plans to premiere over 100 new productions, including hits such as “Stranger Things” and “The Crown“.
Disney supports raises?
Price increases may also be a response to competition from others streaming services. Disney plans to introduce the product this year or in 2025 ESPN directly to the consumer. This service will likely be much more expensive than Netflix.
This also provides an excuse to raise prices, as consumers may perceive Netflix as an even better value for money proposition compared to competing streamers.
Why these increases?
Does Netflix have the right to increase prices? It depends on your point of view. On the one hand, the company invests in new content and has to cover the costs. On the other hand, many viewers believe that current prices are already too high.
Netflix is not the only streaming service planning price increases. Recently, companies such as: HBO Max, Amazon Prime Video and Apple TV+.
The increase in prices of streaming services is caused by several factors. First, these companies must cover the rising costs of content production. Second, competition in the streaming market is becoming increasingly fierce, and companies must find a way to stand out from the competition.
Ultimately, it’s Netflix’s decision as to when and how much it will raise prices. However, one thing is certain: there will come a day when we will have to pay more to watch Netflix.
