Actually, Netflix recently increased its prices as part of the introduction of the subscription with advertising – actually. Now the streaming service probably wants to push through a price increase again, for a completely different reason.
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 will now be followed by a further price increase.
Netflix subscription prices could rise again
As part of the current wave of price increases, Netflix is also being discussed again. As the Wall Street Journal reports, the streaming giant is planning to raise its prices again.
If you look at the current prices on Netflix, the following picture emerges:
- Advertising subscription: 4.99 euros per month
- Basic subscription: 7.99 euros per month
- Standard subscription: 12.99 euros per month
- Premium subscription: 17.99 euros per month
Specifically, the considerations should be about ad-free subscriptions. The advertising-financed tariff will probably remain at the existing 4.99 euros for the time being. The report mentions a discussion in relation to several markets. However, no concrete figures are given.
Also interesting: That’s how (un)popular the Netflix advertising subscription is
Strike as a possible reason for the price adjustment
The reason, however, is the currently smoldering strike by the Writers Guild of America (WGA for short). Hollywood writers have been on strike since early May 2023; However, a tentative agreement was reached a few days ago. 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 soon without a basic subscription?
The rumors of a price adjustment due to the cancellation of the basic subscription take on another level. As of now, the regular basic subscription is the cheapest without advertising. The subscription has already been removed in several countries, including Canada, the US and the UK. This is usually an indicator of changes in other countries.
The move was not well received by many users in the affected countries, especially in combination with the account sharing ban. For many people, the basic subscription was the first solution after the switch, especially if you don’t want to see any advertising.
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 actually completely abolishes the ad-free basic subscription, 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 now provides an 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)