Netflix is one of the most popular streaming services in the world, with over 130 million subscribers. But will the price increase push people away? Only time will tell whether you can access American Netflix from anywhere. In this blog post, we’ll take a closer look at what could happen if Netflix prices continue to go up. Plus, we’ll provide some tips on how you can save money while still enjoying your favorite shows and movies.
In an internal memo via The New York Times, Netflix informed staff that the company might roll out a less expensive plan financed by advertisements before the year 2022 comes to a close.
Netflix intends to create a new tier of service that advertisements will finance during the last three months of this year. This plan aims to attract new members who may not be able to afford the service at its current price point.
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The corporation has been gradually boosting its rates over the course of the past several years, and at the start of 2022, it implemented a major rise in these prices. The price of the most basic streaming plan has increased to $9.99 per month, up from $8.99, while the price of the standard streaming plan that enables HD streaming has increased to $15.49 per month, up from $13.99.
The most expensive 4K Ultra HD streaming package has seen a price rise of $2, moving up to $19.99 from the previous price point of $17.99. Netflix remains the only streaming service that charges users based on the quality of the streamed content, while other options such as Disney+, Hulu, and Apple TV+ offer pricing that is more simple.
Netflix has opposed for a long time the implementation of an ad-supported tier and has stated on several occasions that the streaming platform will never broadcast advertisements; despite this, it is losing members at an alarming rate. Netflix reported in April that it had lost members in the initial quarter of the year.
This was the first time that Netflix reported a drop in subscriber numbers in over a decade. It has experienced a loss of 200,000 customers and anticipates a loss of two million more subscribers in the following quarter.
A portion of the drop in subscribers has been ascribed to account sharing, a practice that Netflix has stated will begin to tighten down on soon. In the letter, Netflix communicated to its staff its intention to restrict access to users who live in a house to reduce the amount of password sharing. According to Netflix, an extra 100 million homes that are not being monetized share with 222 million paying households.
In March, Netflix began testing an additional charge for subscribers who share their Netflix credentials with persons who are not members of their households. Customers in Peru, Chile, and Costa Rica, who are now serving as test markets for Netflix, can pay an additional price to share their subscriptions with two persons who are not members of their household. Before implementing any modifications in other countries, Netflix stated that it was attempting to “assess the value of these two services” when the test was first initiated.
A History of Netflix Price Hikes
Since 2017, the Premium Netflix tier has consistently had the greatest price increases of $2 for each bump. Previously, it maintained a stable price of approximately $12.99 per month for the basic plan and $15.99 for the premium plan. The Standard plan has, on average, witnessed hikes of $1 every month, excluding 2019’s $2 rise and 2022’s $1.50 increase.
That makes perfect sense, considering that Netflix is aware that its more frugal users are more susceptible to price hikes, whilst the subscribers who pay the most presumably have more leeway in their budgets for additional expenses.
The period of time between price increases at Netflix has fluctuated throughout the years, ranging from a few months to over a decade, with the most recent increase occurring 15 months after the previous one.
What Are The Current Netflix Price Tiers?
The Standard tier of Netflix, which costs $15.49 per month and is the company’s most popular offering, enables users to watch up to two streams simultaneously in resolutions as high as Full HD (1080p). Because of these two factors, it is probably the plan with the most participants. To begin, the spread of 4K televisions and 4K content isn’t happening as quickly as some people would like it to. Additionally, it’s possible that some users won’t require the Premium plan’s four simultaneous streams or the quality of 4K HDR video.
On the other hand, we wouldn’t be surprised to find out that the Basic plan, which costs $9.99 per month, isn’t so popular because individuals have conditioned their eyes to see the distinction between 480p standard definition and full high definition (Full HD) (1080p).
Price Outlook For Netflix
Given Netflix’s recent track record, we do not anticipate seeing a price hike until the fall of 2023 at the earliest. It is possible that this will occur sooner than expected, particularly if Netflix determines that its games are something it can charge a higher price for. However, there will be a little waiting period before Netflix implements any further price increases.
Conclusion
Despite these potential risks, there’s no doubt that Netflix is still one of the most popular streaming services, especially when you consider how much its prices have increased over time. If you’re a current subscriber, your best bet may be just to grin and bear it until something better comes along or until your favorite show gets canceled!
