Netflix: should we expect a further price increase in 2024 ?

© Lemon squeezer

Will Netflix subscription prices increase again this year?? According to an article in Variety, which relays comments from analysts, it is very likely. Specifically, the outlet relays a research note from UBS analysts, led by John Hodulik. “We expect to see rate increases this year
”, we read in this note. It also predicts a 15% increase in streaming service revenues in 2024, compared to a 7% increase in 2023.

This good performance would be attributed to the future increase in prices, as well as to the increase in advertising revenue from the platform. It is important to note that recently, SVOD has shown excellent growth, despite a series of unpopular decisions, such as the end of free password sharing (outside the home) and the removal of the Essential offer without advertisements. In addition, Netflix prices have already increased in October in a few countries, including France.

The increases are well considered by Netflix

It should also be noted that Greg Peters, the co-CEO of Netflix, had already mentioned the possibility of new increases during a teleconference in January. The Netflix executive explained that during the deployment of restrictions on password sharing, SVOD “largely suspended price increases”, because he considered these measures to be the equivalent of an increase.

“Now that we have taken this step, we are able to return to our standard approach to price increases. And you've seen us do price increases in the United States, the United Kingdom and France. These changes have gone much better than expected”, he added.

Greg Peters also suggests that Netflix will adapt its approach to each country, and the entertainment value that the service provides to users. In essence, the idea is that Netflix monitors data like user engagement, retention. And when it feels it has good signals, it can ask users to pay a little more in order to invest in more content.

• Netflix could further increase its prices in 2024, according to a group of analysts
• Thanks to new prices and advertising revenue, SVOD could increase its income by 15% this year
• Netflix has already said it held back on price hikes while rolling out new restrictions on password sharing
• Now as this step is reached, SVOD would be more likely to announce increases

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