Netflix is increasing subscription prices in the US, UK, and France yet again, and subscribers are wondering why the company continues to raise its prices. Here’s a breakdown of Netflix’s latest price hike and why it is happening in 2023.
Why are Netflix prices increasing again in 2023?
While there are multiple factors involved, the latest price hike is largely to make up for password sharing.
As streaming wars continue to intensify, Netflix needs to find new ways to adapt to the situation and grow. However, the best way to increase profits from its subscribers is to increase subscription prices.
According to the business model that Netflix follows, it can only continue to grow and turn in profits by gradually increasing its number of subscribers and eventually raising subscription costs. That’s how it will cover its debt and production costs for hundreds of upcoming titles while maintaining its market share value.
Even with intense competition from other streaming services, Netflix reportedly holds a 247.2 million subscriber base in Q3 2023. (via Fortune) That is the highest for any streaming service. But with password sharing being a reality, the streaming giant continues to take active measures to control that. The latest price increase is just another step to support that cause.
Furthermore, Netflix also offers its users the highest number of new movies and TV shows per year compared to all other streaming services and production houses. That’s what allows it to stay ahead of its competition. So, the price increase is also a measure to make up for that.
What are the new Netflix prices for 2023?
The latest subscription costs for Netflix in the U.S. are:
- Standard with Ads – $6.99 a month
- Standard without ads – $15.49 a month
- Basic plan for existing subscribers – $11.99 a month (not available to new subscribers)
- Premium – $22.99 a month
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