Actually, Netflix recently increased its prices as part of the introduction of the subscription with advertising – actually. Now the streaming service is increasing its prices again. In the first few countries, subscriptions are already significantly more expensive.
A wave of price increases for streaming services can currently be observed again. For example, Disney+ also changed the price structure as part of its advertising subscription. Music giant Spotify has regularly raised its prices; The package for families in particular will be more expensive. Netflix is still the number 1 streaming service in many countries – including Germany. The US company last increased its prices in the traditional sense at the beginning of 2022. However, Germany was largely exempt from this. At the end of 2022, Netflix introduced the advertising subscription and at the beginning of 2023 the ban on account sharing. These measures are now being followed by a further price increase, which has already been implemented in the first few countries. The prices for a Netflix subscription could soon rise in Germany too.
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Netflix subscription prices are rising again
At the beginning of October, the Wall Street Journal reported on a possible price increase at Netflix. This has now been implemented in the USA, Great Britain and France. It is particularly interesting to look at our neighboring country, as the adjustments in France are a good indicator of the possible new prices in Germany.
The following subscriptions are now available to French users:
- Advertising subscription: 5.99 instead of 4.99 euros per month
- Basic subscription: 10.99 instead of the previous 7.99 euros per month
- Standard subscription: 13.49 instead of 12.99 euros per month
- Premium subscription: 19.99 instead of 17.99 euros per month
The price increase at Netflix hits the basic subscription particularly hard, which is a whopping 3 euros more expensive per month. However, the price increase for the standard Netflix subscription is moderate at 50 cents.
Also interesting: That’s how (un)popular the Netflix advertising subscription is
Basic Netflix subscription canceled in Germany
In Germany, Netflix could also implement the higher prices shortly. However, the situation regarding the basic subscription looks different in this country.
As part of the announcement of the current quarterly figures, the streaming provider announced in a letter to its shareholders that it would be canceling the basic subscription in Germany. Following implementation in the USA, Great Britain, Italy and Canada, the markets of Spain, Japan, Mexico, Australia and Brazil are also affected by this plan.
In the letter dated October 18th, Netflix writes that the implementation should take place next week. At that point at the latest, customers in Germany will no longer be able to book the basic subscription. Instead, Netflix focuses on the ad-financed offer and the standard subscription. Customers who have currently booked the basic subscription should be able to continue using the tariff for the time being.
Also read: Netflix cancels basic subscription! Why the decision is a real hammer
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Possible reasons for the higher prices at Netflix
Many see the currently simmering strike by the Writers Guild of America (WGA for short) as a possible reason for the price increase at Netflix. Hollywood writers have been on strike since early May 2023; However, a tentative agreement was reached in early October. The streaming services were particularly affected by the strike, because that was what it was primarily about.
Due to the popularity of Netflix and Co., the working conditions for authors have changed significantly. While you are involved differently on television and also benefit from re-broadcasts, there are no comparable regulations for streaming services. The WGA’s demands therefore included higher salaries or a minimum wage, better royalties and protection against the use of artificial intelligence in script writing.
Netflix itself also wants to reflect the value of its offering with the price increase. In the USA, the provider argues as follows: “Our starting price is extremely competitive compared to other streaming providers and, at $6.99 per month in the USA, for example, is much less than the average price for a movie ticket.”
TECHBOOK’s assessment of the new Netflix prices
Difficult territory for Netflix
“From an economic point of view, a price increase at Netflix is of course somehow understandable. The authors’ concern in their strike, which I personally find very worthy of support, is greater security in contrast to AI. This makes productions more expensive, even for Netflix. As I said, passing these costs on to the subscribers makes sense from a business perspective.
From a customer perspective, however, I have to say that a lot of things come together in a very short time frame. The introduction of the advertising subscription, the ban on account sharing – and now a price increase. If Netflix completely eliminates the ad-free basic subscription next week, that could be the reason for many people to cancel their Netflix subscription completely – including me.
There are rumors that Netflix has been wanting to raise prices for a long time, but so far it hasn’t found a reason to do so without offending its subscribers. The strike is now providing impetus for this. According to calculations by the striking Writers Guild of America, the impact of Netflix’s costs will be limited to 0.2 percent. Of course, that would be disproportionate to a planned price increase. Even if each tariff only became one euro more expensive, which is the usual increase, that would still correspond to an increase of at least 5.5 percent.” – Marlene Polywka, editor
Sources
- The Wall Street Journal (“Netflix Plans to Raise Prices After Actors Strike Ends,” accessed October 4, 2023)
- Techradar (“Time to cancel? Netflix rumored to be raising its global prices again soon”, accessed on October 4, 2023)
- Netflix shareholder letteraccessed on October 19, 2023