3/19/2024 0 Comments Netflix new price![]() Netflix was right to crack down on password sharing because art should be paid for. And no, it’s not because it paid off for them and they saw subscriber growth. The company was absolutely right to crack down on password sharing. Because the flipside of the question “is Netflix being greedy?” is “are we just expecting our art to be free?”Īnd while lots of folks aren’t going to like this, the answer is both. But, while it may seem like those examples have nothing to do with the conversation at hand, they are symptoms of the overarching problem we’re discussing today. Humanities belong in schools and while some could make that piece of art after 15 years or so of practice, maybe folks should just pay the nice artist and stop being rude. At least the paying for your entertainment part. The thing is, there’s a lot of nuance when it comes to the discussion around the value of art. Everyone wants to be entertained and to enjoy art, but few want to pay for it. The answer is complicated because we (humans) are constantly devaluing art: arts and humanities are the first programs to be cut in schools, despite research proving their importance crafters can’t sell at a show without hearing “I can make this myself” all day long the idea that “anyone can be a writer” joined forces with the rise of AI and 17 thousand media jobs were lost in 2023 piracy of films and shows runs rampant in the streaming era… this list could go on for some time, but I assume there are enough examples here to make my point clear. But is the price increase smart business or corporate greed? The answer is complicated, but it ends pretty much where you expect it to. Subscribers have made a big deal about the hike, which sees Netflix’s basic plan rise from $9.99 to $11.99, and its premium plan from $19.99 to $22.99. In response to that, they’ve elected to raise prices again (their last price hike was in January of 2022). But the fundamental issues with the streaming economy and shareholders' demand to see even more growth from Netflix mean that price hikes could become a fairly regular phenomenon.In the wake of their recent password sharing crackdown, Netflix saw their highest subscriber growth in years. Despite its numerous original offerings, Suits, a USA network show, is one of its biggest recent hits.Īd-supported plans have been a boon for Netflix, and it's expanding the plan to six more countries next week. Companies like Max (or HBO, as most people still call it) license shows like Ballers and Six Feet Under to Netflix, generating both revenue and new audiences while still keeping a few marquee shows for their own offerings. Netflix is also facing cost pressure from competitors that both make content and now have their own streaming services. While the outcome of the SAG-AFTRA actors' strike is unknown, Netflix CFO Spencer Adam Neumann said on an earnings call last quarter that the writers' and actors' strikes might add "lumpiness" to Netflix's cash flow in 2024. ![]() Netflix, along with other streaming services, will soon have to share performance metrics with writers as part of their new contracts with the Writers Guild of America, as well as increase residual payments to writers. The "steady programming" and "variety and quality" Netflix cites as key to its success in its Q3 results are likely going to cost Netflix a good deal more in the coming year, which may have precipitated going ahead with a price hike before the year was out. Making people pay for password-sharing also had a big impact, as the last quarter saw 8.8 million paid net subscriber additions versus the 2.4 million added the same quarter in 2022, due to "the roll out of paid sharing, strong, steady programming and the ongoing expansion of streaming globally." Netflix now stands at 247 million subscribers worldwide. In its letter to shareholders for Q3 2023, Netflix states that adoption of ads-included plans grew 70 percent from Q2 to Q3, and that 30 percent of new signups are for ad-based plans. The " Standard with ads" plan remains at $6.99. The Standard package remains $15.49 per month, while the Premium plan, with 4K resolution and four screens, was bumped from $19.99 to $22.99 per month, about 13 percent. Starting today Netflix's non-HD, one-screen-at-a-time Basic plan will be $11.99 per month, up $2, or 16.7 percent, from the $9.99 price set during Netflix's last price increase in January 2022. The streaming giant will not, it turns out, be waiting for the actors' strike to end. Having earned a 22 percent margin on $8.5 billion in revenue and picked up nearly 9 million customers from its crackdown on shared passwords, there's only one thing left for Netflix to do as it rounds out 2023: raise prices. Enlarge / The Netflix logo at the entrance to Netflix Albuquerque Studios film and television production studio lot.
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