Netflix eyes another price hike for 2024 – What's the buzz?

The memory of Netflix's last price hike, implemented in October 2023, is still fresh for many subscribers
The image shows Netflix logo lit up. —  Pexels
The image shows Netflix logo lit up. —  Pexels

Netflix subscribers may need to brace themselves for another potential price hike in 2024, as analysts suggest the streaming giant could be eyeing increased subscription fees to bolster its revenue and earnings growth.

While Netflix has not officially announced any plans for a price hike, analysts at UBS Securities, as reported by Variety, foresee the possibility of an uptick in subscription costs. According to John Hodulik of UBS, rate increases are expected this year, with the potential to significantly boost Netflix's total revenue from 7% in 2023 to approximately 15% in 2024.

The memory of Netflix's last price hike, implemented in October 2023, is still fresh for many subscribers. The Basic plan saw a $2 increase to $11.99 per month, while the Premium plan surged to $22.99 per month, marking a 15% rise from its previous price. Similar adjustments were observed in various regions, including the UK, France, and Australia.

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Despite potential concerns from subscribers, Netflix co-CEO Greg Peters indicated during a recent investor call that the previous price increases were well-received and yielded better-than-expected results. Peters also mentioned the company's satisfaction with the outcomes of its password-sharing crackdown, which had been viewed as an alternative to price increases.

However, the question remains whether Netflix can sustain its dominance amidst mounting subscription costs. While the platform continues to offer an extensive library of popular content, including hit series and movies, concerns persist over its cancellation of beloved shows and ventures into less successful areas such as gaming.

As Netflix contemplates future price adjustments, it faces the challenge of striking a delicate balance between revenue growth and subscriber satisfaction. With potential increases on the horizon, subscribers may find themselves weighing the value of their Netflix subscriptions against rising costs, as the streaming giant navigates the ever-evolving landscape of the entertainment industry.