Netflix could be increasing cost structures for its selected list of plans. As reported by Jefferies,which is a research firm, Netflix can announce a hike in its price by Q4 or December 2024.
Reportedly the company will announce a price hike for both of its ad-supported and standard plans. Previously Netflix had made a change in the ‘standard plans’ cost structures in the year 2022.
Netflix to increase its price
Netflix had increased the prices of its Basic and Premium plans in October 2023. Speculations suggest that this could be one of the reasons for a further hike for the standard and ad-supported plans. Additionally, Jefferies mentioned that Netflix might discontinue its basic plans. The firm highlighted that the new pricing strategies can drive Average Revenue Per User (ARPU) growth into 2025. Also last year, Netflix had discontinued its basic plan for new or returning members in the UK, Canada, and the US.
Netflix is expected to offer its ad-supported pack at a cheapest price. As reported by Jeffries, there can be three key reasons behind this potential hike. These are:
- Netflix last raised the price of its standard plan last in January 2022
- Currently the ad-supported plan is offered at the industry’s lowest price, which is expected to need some adjustment.
- Lastly, Netflix has recently added live sports into its platform, which might call for higher prices.
“We believe Netflix has been positioning itself throughout this year for a year-end price hike. December / 2025 will have major content releases supporting a pricing increase including the Christmas NFL game, Squid Game 2 on Dec 26th (season 1 – the #1 watched NFLX show of all time), WWE Raw starting Jan 2025, and Stranger Things 5 coming in 2025 (season 3/4 in top 10 of all-time),”. However, the increase in the price rate of Netflix is not officially announced. So, speculations about price hike still continue.
Other updates
A few days ago on June 7, Netflix had revamped their entire television app. Netflix made a significant redesign for its television app. The home page was revamped with larger title cards and highlighted information such as a show’s duration in the top 10 list.
In addition to this the previews of shows were showcased on the homepage. Now you can hover over a TV show or movie long enough, and Netflix will begin playing a short preview directly within the tile. The new design is available to selected users. Netflix further mentioned that it aims to bring personalised experiences for its users.
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