The streaming covenant continues to break down. Simple, value-for-money pricing and no ads meant that customer loyalty was assured. The whole no-ads thing was betrayed, and pricing became more complex. Streamers may now be very close to breaking the final straw – value for money. Netflix are pushing it.
Netflix is expected to put its prices up again as it tries to stimulate revenue and earnings growth. Analysts at UBS Securities published their research note stating:
“We expect to see rate increases this year”.
According to the research, as reported by Variety, Netflix may be more able to take advantage of the renewed, market-wide interest in licensing content to drive down production costs, while seeing revenue increase from ad-supported tiers.
Now, I am no stockbroker and none of this constitutes investment advice, but with a 15% revenue boost predicted, it might be worth a punt.
Netflix already increased prices last October when its basic plan went from $9.99 to $11.99 in the United States. It also jacked prices in key territories overseas. They are yet to announce pricing movement plans for 2024.
Netflix defied the slump to add 29.5 million net new subscribers in 2023, but this was against the backdrop of them cracking down on password sharing. So that’s 29.5 million Mom’s finally paying to watch The Crown themselves.
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