Why Netflix keeps cranking up its prices

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And why its price is likely to keep going up.

Every year, the cost of streaming gets more and more expensive — and just last week, prices started going up again. Netflix announced that all of its tiers would get an immediate price hike for new subscribers, boosting its most expensive plan to $20 per month. It’s the third price increase since 2019., Netflix’s standard tier now slightly out-prices HBO Max and the Disney Bundle , making it one of the most expensive on-demand streaming options among leading services.

“They’re doing pretty well, but they’re going to continue to tighten up their finances as time goes by,” Parks Associates director of research Paul Erickson tells. “This is the fundamental way in which they do that — small incremental price changes over time. Because they feel they are so well entrenched, and their customers are loyal, they feel that it’s not going to materially affect their subscribership.”One of the big reasons Netflix needs money is to pay for new shows and movies.

By dumping truckloads of money in original programming, streamers hope to not only hang onto their existing customers but lure in new subscribers as well. For Netflix, expanding its programming across genres and categories helps it be everything to everyone. Investing in an ever-growing portfolio of scripted, unscripted, animated, and live-action programming helps ensure that Netflix retains a monthly subscription.

“The more that they can serve all the different aspects of different households — whether that’s language specificity, if it’s market and lifestyle specificity — the better,” Erickson says. This allows Netflix to justify positioning itself as a core, must-have entertainment service. And if itsBut there’s another reason Netflix has turned to price increases to raise more money.

 

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Cause evil?

Subscriptions are slowly becoming the very thing they were meant to destroy

Why are people suprised? Yall are spoiled. You have a big chunk of the world entertainment in one app with increasingly better quality while inflation is skyrocketing and you are suprised that it gets more expensive? Its still cheaper and better than cable with ⅓ of the cost

Given the ongoing pandemic, people losing jobs, staggering inflation, that this hike would be perceived as ill timed. It paints the company as greedy and morally oblivious, and instead of building loyalty during a difficult time, it's opting for profit. I just cancelnetflix

God knows why .btw we are enjoying the price here in India 😍

That’s why I am downloading their movies/shows through torrent sites. I was happy with their services before pandemic. After that they’ve downgraded their bitrate and the quality sucks. That’s why I won’t pay them.

Inflation

In india the prices are reducing constantly

At least in india the prices are decreasing

Hey netflix could you please ease up on mediocre content and then raising prices every six months?

When I move out and stop leaching off my parents Netflix subscription, I'm just going to buy movies on Blu-ray and rip them to a Plex server.

“Because it can”. Saved you the click.

Let me guess: Could it be because the only way to increase profits is to milk existing customers, because the market has become diluted, and new subscribers are getting harder to find, as old ones leave for other streamers?

SavedYouAClick any insights on this one?

They can do it, only if they include sports and news channels... Otherwise it's shit.

Because they can. Period! Rest is just f…. Excuses. Is going to keep happening until the rest of platform’s catch up. Which will take years. They received record earnings since the pandemic, because everyone is at home more than before, so instead of lowering prices they go up🤬

Lol, they just cranked it down by 60% in India Sad Americans

Because it can.

They are mind drug dealers and you will always pay more for your addiction

The make £20Bn a year. Greedy bastards.

To make more money offcourse

Capitalism. Next.

When reached for comment, Netflix replied with...

Because their user base is probably shrinking.

Because they know you have friends and cancelling would piss them off

I don’t care why, it has to stop. Otherwise I’ll just pause my subscription and then only reactivate it for one or two months out of the year

Because they are a profitable business

Not in India bro 🤓

Because it is a product within a system that expects insatiable growth over improving the service it provides.

If they make enough money, eventually they’ll make a good show?

Supply&demand, people seem willing to pay more, as Netlix makes more and more content.

Because people keep cancelling.

because of capitalism

Because they can.

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