And why its price is likely to keep going up.
Every year, the cost of streaming gets more and more expensive — and just last week, prices started going up again. Netflix announced that all of its tiers would get an immediate price hike for new subscribers, boosting its most expensive plan to $20 per month. It’s the third price increase since 2019., Netflix’s standard tier now slightly out-prices HBO Max and the Disney Bundle , making it one of the most expensive on-demand streaming options among leading services.
“They’re doing pretty well, but they’re going to continue to tighten up their finances as time goes by,” Parks Associates director of research Paul Erickson tells. “This is the fundamental way in which they do that — small incremental price changes over time. Because they feel they are so well entrenched, and their customers are loyal, they feel that it’s not going to materially affect their subscribership.”One of the big reasons Netflix needs money is to pay for new shows and movies.
By dumping truckloads of money in original programming, streamers hope to not only hang onto their existing customers but lure in new subscribers as well. For Netflix, expanding its programming across genres and categories helps it be everything to everyone. Investing in an ever-growing portfolio of scripted, unscripted, animated, and live-action programming helps ensure that Netflix retains a monthly subscription.
“The more that they can serve all the different aspects of different households — whether that’s language specificity, if it’s market and lifestyle specificity — the better,” Erickson says. This allows Netflix to justify positioning itself as a core, must-have entertainment service. And if itsBut there’s another reason Netflix has turned to price increases to raise more money.
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