Will Netflix raise subscription prices soon?
The popular video streaming service is sending some mixed signals.
As recently as July, Netflix executives indicated that pricing would remain the same for at least a year. That made us feel pretty good about budgeting the service at current rates until at least sometime in mid-2024.
But a new report from the Wall Street Journal signals that Netflix may have a change of heart that could soon impact streamer’s wallets.
Let’s take a look at what we know so far.
Wall Street Journal Reports That Netflix Could Be Raising Prices Soon
An October report from the Wall Street Journal indicates that Netflix is considering a price hike much sooner than we previously thought.
The WSJ reports that Netflix’s two ad-free subscription tiers are likely to receive a price increase in the coming months.
The reason?
It seems as though Netflix is anticipating that the costs of production for its vast array of originals will go up after a Hollywood actors strike forced a new agreement on terms.
The report did not indicate that Netflix plans to alter the pricing on its ad-supported tier, which is the cheapest option at $6.99 per month.
They did not specify how much the price could be going up on the ad-supported Netflix tiers.
Here’s a look at the current pricing model:
- Standard with ads ($6.99 per month)
- Standard ($15.49 per month)
- Premium ($19.99 per month)
Subscribers to the Standard and Premium packages have the option to add “extra members” for $7.99 per person per month. These out-of-household subscribers get their own login and password, but the bill is paid by the main account holder. (This is a new policy to retain customers who were sharing passwords.)
Netflix’s Pricing Strategy Has Changed Significantly
If you feel like you’ve read a lot about the Netflix pricing model in recent months, it’s probably because they’ve been making significant changes to their product.
They’ve taken on major issues in the industry like producing ad-supported content and cracking down on password sharing among streamers in different households.
The result is a much different pricing menu than what subscribers experienced in the recent past.
Here’s a quick rundown of the changes they’ve made since the beginning of 2022:
- January 2022: Netflix raises prices on all subscription tiers. This is how we landed on current pricing for “Standard” and “Premium” subscriptions.
- November 2022: The “Standard with ads” subscription was introduced at $6.99 per month. This is the cheapest way to get Netflix and was the result of the streaming service caving to the ad-supported model after years of saying it would never have commercials.
- May 2023: Netflix announces its plan to start charging customers who previously were sharing passwords with people outside their household. “Standard” and “Premium” subscribers can now share accounts for an additional $7.99 per person per month.
- July 2023: The “Basic” plan, which was $9.99 per month, was eliminated in an effort to simplify choices and drive low-cost consumers to the ad-supported tier. Netflix Chief Financial Officer Spencer Neumann also indicated that price increases were not likely in the near term.
Will you consider dumping your Netflix subscription if prices jump soon? Will the ad-supported subscription be an option for you? We’d love to hear your money-saving streaming strategies in the Clark.com community.
