Here we go again, folks. Netflix is tossing around the idea of yet another price hike, and if you’re a subscriber, you’ve probably got that familiar sinking feeling. You know the drill—every few months, your monthly bill creeps up just a little higher. And for what? More cooking shows and reality TV reruns? But here we are, bracing for the potential sticker shock as Netflix gears up to release its third-quarter results.
So, what are we looking at now? The current lineup includes a $6.99-a-month ad-supported plan, and for those who still believe in uninterrupted binging, the Standard and Premium tiers are $15.49 and $22.99, respectively. Yes, those are the plans where you don’t have to sit through commercials, yet you still feel like you’re paying for the privilege. The last time Netflix hit us with a price hike was in the fall of 2022, and it wasn’t just the U.S. feeling the pain—subscribers in the U.K. and France also saw their bills balloon. And now, here we go again.
Analysts over at Oppenheimer are practically drooling at the prospect of Netflix pulling the trigger on another round of price increases. They’re predicting an 8-15% jump on the Standard plan, which has been stable since January 2022. You see, Hulu and Max are now more expensive, so naturally, Netflix has to keep pace, right? Gotta love how streaming platforms keep each other in check… by collectively bleeding our wallets dry.
Jason Helfstein from Oppenheimer is out here saying that Netflix’s Standard Plan was priced at a 53% premium compared to its competitors just two years ago. Now, it’s only 4%. But don’t worry, Netflix is apparently still cheaper than Hulu, Max, and Disney+, so we should all be grateful, right? Oh, and if you think the higher prices will drive subscribers away, don’t hold your breath. According to the experts, strong viewership and shiny new content, like the NFL, should keep us all hooked. Who needs to pay rent when you’ve got Squid Game season two and a Thursday night football game?
Netflix Price Hikes: Top Execs Offer U.S. Outlook During Q3 Earnings Call https://t.co/OI5dsHUam1
— Deadline (@DEADLINE) October 17, 2024
Not to be outdone, analysts over at Macquarie are also bullish about Netflix’s future price hikes. They’re betting on the long-term success of the ad-supported tier, bolstered by sports and, yes, more price increases. Their confidence is pretty telling—Netflix hasn’t raised the price of its Standard tier in nearly two years, so we’re “due” for a little bump, right? How kind of them to wait this long. Macquarie analysts point out that Netflix’s ad-supported tier is still a steal at $6.99, so maybe we should all just suck it up and switch over, right?
Let’s not forget Netflix’s crackdown on password sharing. Co-CEO Gregory Peters touted this move as a “substitute price increase,” which is corporate speak for “we didn’t technically raise your bill, but we made sure to squeeze you in other ways.” Remember when you could share your Netflix login with a friend across the country? Not anymore. Now, they either have to pay for their own subscription or get added as an “extra member” for an additional $7.99 a month. How convenient.
In the end, Netflix is playing the same game as everyone else—testing the waters with different price points, nudging us up bit by bit, all while convincing us that we’re getting a great deal. But when does it stop? For now, all we can do is wait for the next announcement and hope our favorite shows don’t disappear behind an even higher paywall.
