It’s already happened in the US, but it’s probably only a matter of time here: Netflix has raised its prices. Many Sky and DAZN customers have also had to dig deeper into their pockets for their subscriptions since the beginning of February. The fact that streaming services are turning the price screw could backfire enormously. An analysis by Anna Schmid.
Netflix is getting more expensive: This headline has been read on a number of online portals in the past few weeks. The respective articles almost all consist of good and bad news.
The good news: Netflix is only increasing prices in the US and Canada for the time being. The bad: In the past, the streaming service also turned the price screw in Germany shortly after US changes. The only platform that will cost more in the future would not be Netflix.
Sky customers have also had to dig deeper into their pockets since February 1st, as have people who are interested in a DAZN subscription. Streaming is getting more and more expensive, that’s for sure. However, the respective providers are not necessarily doing themselves a favor.
Sky is becoming more expensive: customers are now paying this much for the TV packages
Mega price increase at DAZN: Customers now have to pay that much
Low-income families can no longer pay for subscriptions
Because more expensive subscriptions may increase sales in the short term. In the long term, however, it is quite possible that customers will turn their backs on Netflix, Sky, DAZN and other streaming services because they can no longer afford the expensive online sound reinforcement.
Low-income families in particular are struggling with increased inflation. In times of high food, gas and energy prices, you think twice about whether the expensive Netflix subscription is really necessary.
In addition, the streaming market is increasingly fraying. Netflix users are no longer just Netflix users, but often also have a subscription to Amazon Prime Video, Disney Plus and have to use Sky or DAZN for sports broadcasts. If many streaming services become more expensive, some series fans will no longer be able to avoid sorting out.
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The content of the streaming providers can be a motivator to continue subscribing to platforms such as Sky, DAZN or Netflix. If the price for the monthly streaming fun increases, many users’ expectations of the content also increase. This is shown by a look at the social networks, where real debates about the price increases have flared up.
“Sky announces a general price increase via email. Bundesliga lost on Sunday. Champions League lost entirely. And yet: price increase,” writes a user in the Sky forum. Other commentators are also upset, “you don’t have to understand it,” reads another post.
The company’s rationale, the subscription cost based on Increasing “investments in program diversity and product development” is something that some users cannot really understand.
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DAZN, where the streaming costs for new and returning customers double (the monthly cancellable subscription costs 29.99 euros instead of the previous 14.99 euros per month)cites an increased rights portfolio as justification: “This means that the sports platform does justice to the quality and value of its range, which has been greatly expanded since the start of the season.”
The service was relatively cheap for a long time, and there is a large range of sports: 106 Bundesliga games and almost the entire Champions League have been available on DAZN since the start of the 2021/22 season. Nevertheless, the DAZN announcement is a price shock for some customers. “Are you insane?” asks one, another complains: “It will rightly rain down on layoffs!”
And Netflix? In fact, the streaming giant is investing a lot of money in new productions. Ampere Analysis estimates that the company will spend more than $230 billion on new content worldwide in 2022. Only Disney and Comcast outperform Netflix in terms of video investments.
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The question is, can the platform continue to deliver enough promising, compelling, groundbreaking new movies, series, and shows? Because that’s exactly what the income from Netflix subscriptions is used for, as the company has repeatedly emphasized in the past.
If not, disappointed US users may cancel their subscriptions. Just like German users, even if the price increase arrives in this country. Ultimately, one thing is clear: raising streaming prices may be a sensible step for many companies. The bad news is that some users probably won’t call it.
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