Years ago, I predicted that streaming companies would raise subscription prices regularly, maybe even yearly. Today, news broke that Netflix is raising the price of subscriptions again.
The details:
- The new prices affect viewers from the United States, Canada, Portugal, and Argentina.
- In the US, the price of a subscription rises between $1 and $2.50, depending on the plan.
- The changes take effect on the next billing cycle.
Here is the new price structure in the United States:
- Standard with Ads is now $7.99 (up $1)
- Standard is now $17.99 (up $2.50)
- Premium is now $24.99 (up $2)
- Adding an extra member is now $8.99 (up $1)
This is the first price increase since October 2023, when Netflix increase the price of Premium from $19.99 to $22.99 in the United States. It also increased the price of its Basic plan back then, but this plan is no longer available.
There you have it. Disney increased pricing last August already in the United States.
My 2023 article on the matter still stands. I predicted regular price jumps, and more and more ads on the platforms. Ads would bring in revenue, but also make the pricier plans more attractive. It is a page directly out of Google’s playbook on YouTube. Make ads insufferable and you will increase subscriptions to more expensive plans that promise fewer or no ads.
I will continue what I have been doing for years: subscribe to a streaming service for just a month, if they have something that I’m interested in. Do that once a year, and you save a lot of money. Yes, you won’t be the first to watch a new show, but that is not really important to me.
Now it is your turn. Are you subscribed to streaming services? If so, to which and how much do you pay currently for the subscription?
Sorry Netflix, if you want to charge money with ads, I am not your customer (I maybe Paramount+ customer if they roll Pluto back into main platform. Yes, I would pay something for old Star Trek/Stargate/Nick shows. I am addicted). Also, as almost everybody noticed, the quality of new Netflix shows is way down. They are not hiding that they want to be a casual viewing platform aka white noise in the background while you are scrolling on your phone or computer.
Had one purchased (on margin or else wise) one share of NFLX yesterday morning and waited until earnings came out after the bell, he/she would have profited enough to purchase a full year of ad-free Netflix. It’s a common occurrence with NFLX; wait for the quarterly earnings announcement; purchase a share a day or two in advance –sometimes a week; sell the next morning or in the evening if one’s account has “after hours” trading permissions. Every quarter it happens, and the stock keeps going up and up along with subscription prices. The one great thing is the stock price is rising exponentially compared to the cost of service. Maybe purchase one share and hang on to it. Sell the profits when it’s time to renew the subscription. $1,000 is the next level. No, no joke; it’s because people are basically addicted to Netflix and will pay ANY price to keep the stream going.