The premium tier, at $22.99 per month as of an October price increase, is now one of the most expensive in the industry. But some are also questioning how high Netflix can push it without significant churn. “Further price hikes will be tightly correlated to a strong performing content slate,” Bernstein analysts added in a report published on Wednesday.Īnalysts previously told Fortune they see no end to the price increases across the streaming industry, because it can effectively pump revenue and keep investors happy in a saturated market. Netflix took another big step this week in its plans to augment the entertainment value with a $5 billion, 10-year deal with World Wrestling Entertainment. “We look at engagement, retention, acquisition as the signals there, so that we can go back to members and ask them to pay a bit more to keep that positive flywheel going, and we can invest in more great films, series, and games for those members,” Peters said. The move may impact how the company plans to change prices for adjacent tiers.īased on what the company’s co-CEOs have shared, Netflix will begin charging more in specific regions when it determines it has delivered enough “entertainment value” to do so. and Canada, to drive users toward its ad tier, executives said in the company’s earnings note. The company will phase out its Basic plan for new members in prime advertising markets, including the U.K. While Netflix’s past strategies can indicate what executives are thinking for the future, it is difficult to make any concrete determinations about executives’ plans for price increases. And they can expect to shell out more money for the Standard tier in the near future, given that executives last increased its cost in January of 2022. consumers can expect the price of the advertising tier to remain stable over the next couple years, since it only launched in November of 2022. If Netflix follows that same course of action, U.S. But after that honeymoon phase, Netflix tends to increase the monthly cost of its tiers by a couple dollars every year to every other year. Netflix launched in Canada in September 2010, charging $7.99 for unlimited TV shows and movies per month.In the first four to five years after launching a new tier of service, the company typically doesn’t raise the price of that product. As always, we will continue to offer a range of plans so that people can pick a price that works for their budget." "Members tell us how much they value variety, and we're updating our prices so that we can continue to invest in more shows and films. "Canadians have never had more choices when it comes to entertainment, and we're more committed than ever to delivering an experience that exceeds their expectations," Netflix said in a statement about Thursday's price increase. And the premium offers four-screen usage and ultra HD video. The standard plan allows two screens with high-definition resolution. The basic plan lets subscribers watch on one screen at a time at a lower-quality resolution. At that time, it bumped up the basic monthly plan by a dollar to $9.99, the standard by $3 to $13.99 and the premium by $3 to $16.99. The company's last price increase in Canada was announced in November 2018. Netflix has cancelled some of its programming recently due to COVID-19 pandemic-related issues, including Glow, The Society and I Am Not Okay With This. Analysis Why Netflix and HBO don't care if they lose $500M a year to password sharing
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