Experts are certain that price increases are planned at Netflix again for 2024. In this way, Netflix is testing the limits of what is bearable and subscribers could soon have had enough.
The Netflix headquarters in Los Angeles (Source: Netflix)
- Netflix offers a very affordable subscription model with the standard subscription with advertising.
- However, the other subscriptions are significantly more expensive and the prices are expected to be raised again in 2024.
- Has the streaming service soon reached its subscribers’ pain threshold?
“From just 4.99 euros per month” – this is how Netflix advertises its own offer. Tempting and cheaper than ever, even in 2014, when Netflix launched in Germany, people paid at least 7.99 euros for the streaming service. How does this fit in with the numerous price increases Netflix has announced in recent years?
In fact, Netflix is now focusing more and more on the cheap advertising subscription (“standard subscription with advertising”), because in addition to the 4.99 euros that the streaming service receives from subscribers every month, there are of course also large sums from them Companies that advertise on Netflix – the more advertising subscriptions sold, the more a commercial on Netflix costs.
But while Netflix is making the advertising subscription more and more palatable for this reason, the streaming service hardly praises the other subscription models anymore. Since the relatively inexpensive but ad-free basic subscription has been abolished, subscribers now have to pay at least 12.99 euros per month for the standard subscription if they don’t want to see any advertising and download films and series – unless they simply have a cheap subscription complete in Turkey.
The premium subscription, however, costs 17.99 euros and offers better image quality and the option to run several streams at the same time. Of course, you can still only share Netflix with people outside your household if you pay an additional surcharge, which adds another 4.99 euros per month. Anyone who has a premium subscription and books two additional members will pay an impressive 27.97 euros per month.
Today is not every day, it will be more expensive, no question! Films like “Rebel Moon” drive up Netflix costs (Source: Netflix)
Anyone who thinks that the Netflix price can hardly rise any further is wrong. In a letter to Netflix investors dated January 23, 2024, the following paragraph is hidden between a positive review of the past quarter:
We try to offer a range of prices and plans to meet a wide range of needs, including highly competitive starting prices. As we invest in and improve Netflix, we will occasionally ask our members to pay a little more to reflect these improvements […]
Netflix
Netflix makes no secret of the fact that a further price increase is only a matter of time. This could also affect the advertising subscription; even at 5.99 euros, this subscription model would still be cheap. However, it is more likely that the standard and premium subscriptions will again become more expensive.
Analysts at UBS Securities are also sure that another price increase is coming in 2024. As a result, Netflix could ultimately increase its own sales by 15 percent, a significant growth compared to the 7 percent increase in sales in 2023.
How long can the streaming service afford these cost increases? Many subscribers have been paying for Netflix for years, and they keep their subscription going just out of habit. But other streaming services are making the world of streaming more and more expensive for users and the point could soon be reached where Netflix loses too many subscribers with the next price increase.
Prices are rising, but willingness to pay is declining Netflix (Source: netzwelt)
According to a study by Bitcom, users of streaming services in Germany currently pay 15.70 euros per month. That’s already less than last year; in 2023, film and series fans would still have access to streaming services for an average of 17.90 euros.
On the one hand, this could be due to the fact that subscribers have already started using fewer streaming services, but on the other hand, this lower value could also be explained by the cheaper subscription models with advertising. According to Bitcom, music streaming accounts for another 11 euros per month, which together corresponds to over 300 euros per year – a high sum that, if Netflix has its way, will soon rise even further.
Hardly anyone wants to give up streaming completely, but the days of permanently subscribing to multiple streaming services are a thing of the past. Whether you choose a specific provider or switch monthly, the great years of streaming are over – and the streaming services have themselves to blame for that.
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