In recent years, Netflix has made several price increases, always with the same arguments: to add more original content and offer ever more quality in the series, films and documentaries that are added to the catalog every week. If today the Premium offer is about to exceed 20 euros and in addition Netflix asks for a financial supplement in the event of sharing an account with a third party outside your household, all this would not be enough. Some experts believe that the streaming service could become even more greedy.
Towards an increase in the price of Netflix offers?
Netflix could increase its prices again soon. According to experts close to the streaming sector in the United States, cited by Varietythe platform would have reasons to want to push prices upwards, despite a recent increase. With financial results due today for the third quarter of 2024, some expect Netflix to take the opportunity to unveil pricing adjustments. This decision comes as growth in the number of subscribers has slowed for several months.
In October 2023, Netflix had already increased its prices for its subscriptions in France, the Premium had increased to €19.99 per month and the Standard subscription without advertising to €13.49 per month. Contrary to what one might have thought, this increase did not lead to a wave of terminations. Better yet, the decision to restrict account sharing has pushed many users to take out their own subscription, thus limiting potential losses.
Why stop there? Netflix’s logic seems simple: the platform knows that its content remains essential for millions of households and despite competitors like Disney+ or Prime Video, it remains relatively competitive in terms of prices.
Experts believe that a new increase could affect the Standard offer without advertising first. It is unlikely that the Premium subscription will exceed the €20 mark, but Standard subscribers could see their bill rise. This strategy would be justified by several factors, including variations in exchange rates and the diversity of the platform’s offers.
Compared to other streaming services, some ad-free subscriptions remain more expensive than Netflix’s. The company could therefore adjust its prices upwards without being perceived as exaggerating on prices. By taking a gradual approach, Netflix could continue to bring its prices in line with its main competitors while maintaining user interest.
Financial results on the rise despite everything
Forecasts for the third quarter of 2024 indicate revenue of $9.77 billion, an increase of 14% from last year. This figure is explained in particular by the policy of ending account sharing, which led many users to take out their own subscription. In addition, Netflix has been able to take advantage of strategic partnerships, such as with Free in France, which includes the Standard subscription with advertisements in its Freebox Ultra and Freebox Delta offers. Supermarket chain Carrefour has also included the Netflix Standard subscription with ads in its Carrefour Plus subscription for those who shop online.
The challenge for Netflix: increase its revenue per subscriber
If Netflix continues to post stable revenues per user, the company would nevertheless like to see an increase in this average from 2025. With debt linked to its massive investments in content production and infrastructure, the company must increase its revenues to stay competitive. A further increase in prices could therefore be the solution.
The question remains whether Netflix will be able to convince its subscribers to remain loyal, while continuing to adjust its prices to meet investor expectations. With its financial results imminent, the answer could come very soon. Fingers crossed that the price increase will not be excessive if it takes place!
