Netflix Will Likely Implement Price Hike in 2024

Analyzing Potential Netflix Subscription Plan Adjustments

Recent reports from Variety suggest that UBS analysts are anticipating a forthcoming increase in streaming plan prices by Netflix in 2024. This projection aligns with hints dropped during the company’s fourth-quarter earnings announcement in January, indicating incremental adjustments to Netflix’s subscription tiers.

John Hodulik, an analyst at UBS, anticipates rate hikes from Netflix this year, potentially driving a 15% revenue growth by 2024. Notably, last October saw a bump in the Basic plan’s price from $9.99 to $11.99 per month in the US, with similar adjustments in the UK and France. While Netflix has not officially disclosed plans for subscription price adjustments in 2024, company executives have acknowledged the possibility of such increases.

During the Q4 2023 earnings call, Netflix co-CEO Greg Peters acknowledged a temporary pause in price increases while implementing a paid-sharing program. With the completion of this initiative, Netflix plans to resume its standard approach to pricing adjustments. Peters emphasized the company’s commitment to enhancing entertainment value and expressed confidence in customers’ receptiveness to moderate price increases based on past successes.

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UBS’s analysis also highlights Nielsen data indicating Netflix’s growing influence in the US TV viewing landscape, with a rise in market share to 7.9% in January 2024. This dominance, coupled with competitive pricing, positions Netflix favorably against industry rivals.

Furthermore, UBS has revised its projections for the streaming service’s net subscriber additions in 2024, anticipating continued growth momentum with an estimated addition of 20 million subscribers.

Over the years, Netflix has demonstrated a proactive approach to pricing adjustments, a strategy rooted in its commitment to aligning subscription plans with the ever-evolving landscape of market dynamics and content offerings. This history of periodic price adjustments reflects the streaming giant’s keen awareness of the need to continuously evaluate and adapt its pricing strategies in response to shifting consumer preferences, competitive pressures, and the evolving cost of content production.