A Netflix price hike is something many users have begrudgingly gotten used to. As the years have gone on, Netflix has spent billions and billions in original content. It’s no wonder they’ve had to ramp up the cost of their service of the years to help fill the financial void. January of 2019 is when we last saw them knock up the price, with its Standard plan rising from $10.99 a month to $12.99 a month. Now, we may have another on the horizon.
According to NextTV, Jefferies analyst Brent Thill believes another hike is “probable in the near-to-mid-term.” If true, this could increase the streaming giant’s 2021 revenue by $500 million to $1 billion. So, chump change. And apparently, Thill even thinks that Netflix can get away with such a hike in international markets, citing its “deepening content library and outsized consumer value proposition.”
Indeed, Netflix has proven to be quite the valuable commodity. Like me, many users have turned to Netflix as a rock of necessary content in the midst of the pandemic. And Netflix has also been upping its game in the early months of the pandemic, “making the service more valuable to that period of time, adding more content, adding more service features to that period as well,” as Netflix’s chief product officer and COO Gregory Peters noted in July during an earnings call.
Peters even went so far as to hint at a price hike. “It might be time to go back to [each country],” he said, “and ask them for a little bit more so that we can then invest that further into amazing stories, great content, better product experiences and create even more value for them.”
In short, a price hike seems inevitable, and if there was a streamer who could weather the storm, it’s Netflix. In fact, after its last hike in 2019, its revenue spiked 28%. So, despite all of our complaining, it does seem to make sense from a financial standpoint. That being said, Netflix faces a lot more competition these days. Back in 2019, it was mostly them, Hulu, and CBS All Access (if we can even count them). Now, there’s Disney+, Apple TV+, HBO Max, and Peacock.
Still, Netflix is a giant among giants, so I’d say a price hike could still help them in the long run. Would you stay with Netflix if its Standard service was raised to $15.99 a month? Let us know your thoughts down below!
Continue the LRM Online conversation on Discord by CLICKING HERE!
Have you checked out LRM Online’s official podcast feed yet The LRM Online Podcast Network? This includes our flagship podcast Breaking Geek Radio: The Podcast, GeekScholars Movie News, and our morning show LRMornings. Check it out by listening below. It’s also available on all your favorite podcast apps!