UGH … Analysts Say Netflix Will Raise Prices Again
By Movieguide® Contributor
A strong third quarter for Netflix has some celebrating, but experts are predicting price hikes for the streaming service.
“Netflix ended June with 277.65 million global subscribers after adding 9.33 million in the first quarter of 2024 and 8.05 million in the second,” The Hollywood Reporter wrote. “Management has forecast third-quarter net additions to come in below the year-ago period when it added 8.76 million.”
However, to keep these numbers on an upward trajectory, industry insiders hypothesize that Netflix will bump their subscription prices.
New Street Research analyst Dan Salmon told Variety there’s “the potential for a major price increase announcement, including the U.S,” adding that a price hike “could potentially be broader-based” in the U.S.
Morgan Stanley analyst Benjamin Swinburne also predicted “continued price increases” on premium plans.
Some of these subscription increases are already in the works. Movieguide® previously reported:
Netflix is getting rid of its cheapest ad-free plan, the streamer announced last Thursday.
The company began the phase-out in Canada and the UK, and the United States and France are next.
MSN reported, “Basic users in the US who want an ad-free viewing experience on Netflix will now have two choices: Netflix’s Standard plan, which costs $15.49 per month, and its Premium plan, which costs $22.99 per month.”
The Basic plan was previously discontinued, although customers did have the option to purchase the ad-supported plan for $6.99/month.
The strong numbers experts are expecting Netflix to post in Q3 have opened up another conversation about money — will the streaming service start paying their talent more?
Chief Content Officer Bela Bajaria was quick to put those rumors to rest, telling an audience at Bloomberg’s Screentime conference, “We are not changing our compensation model.”
She explained that “there have been a few bespoke deals on a couple of movies,” but “it’s a very tiny thing that has blown up to this story of [how] we’re changing our business model. We’re not.”
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