Netflix is the most popular streaming service available, and much like its competitors, it has been involved with a number of price hikes. Now it looks like Netflix could be increasing their prices again for 2024.
The possibility of Netflix increasing their prices comes not only after other aforementioned price hikes, but also the platform’s decision to crackdown on password sharing and to introduce tiers with ads. Now, as shared in a new report, their price hikes might not be over.
The report shared that “Netflix is expected to hike prices on its streaming plans in 2024,” and that it could be “a move that should accelerate its revenue and earnings growth.” This information was first shared by the analysts at UBS Securities via Variety.
Specifically, John Hodulik led the analysts at UBS Securities which came to this conclusion. Additionally, Variety notes that this could be followed by “a ramp-up in revenue from its ad-supported tier and healthy subscriber gains,” which “should push the company’s total revenue growth in 2024 to 15%, per the analysts’ estimates, compared with 7% growth in 2023.”
This seems to line up with a statement from Netflix co-CEO Greg Peters made during the streaming company‘s Q4 2023 earnings call. Peters shared during his statement that Netflix “largely put price increases on hold” while rolling out their paid-sharing program. This, Peters notes, is “because we saw that as a form of substitute price increase. Now that we’re through that, we’re able to resume our sort of standard approach toward price increases. And price increases, you’ve seen us do that in the U.S., U.K. and France. Those changes went well better than we forecasted.”
Peters continued:
“We will continue to monitor other countries and try and assess… when we’ve delivered enough additional entertainment value” to “ask [customers] to pay a bit more to keep that positive flywheel going and we can invest in more great films, series and games for those members. So, you know, the summary statement might be, ‘Back to business as usual.’”
Many subscribers will no doubt express frustration at the thought of more price increases. Especially as they did when previous price changes were implemented. Nevertheless, UBS Securities believes that Netflix’s subscriber count will only continue to grow, so we’ll have to see what happens next.
Stay tuned to ScreenGeek for any additional updates regarding Netflix and any potential price changes in the near future. Hopefully we’ll have more information soon regarding whether or not the streaming giant has plans to once again shakeup their platform.