Netflix’s price hike isn’t going to stop anytime soon

When Netflix raises its prices – which often happens when Ben Affleck likes A-List celebrities – the company always gives the same reason. It takes extra money, you see, to be able to invest in the kind of programming and products of 302 Million subscribers. Here’s how the monthly price of Ad-Free Netflix went from $7.99 to $17.99 over the past 13 years, including a $2.50 jump just announced during the company’s earnings report today. There’s a $7.99 monthly plan, but that includes ads — and that’s a dollar more expensive than a week ago. You want to know why Netflix keeps raising prices? Because it can. Because Netflix wins. The rest of the streaming industry is fiercely competing over the last pool of money, dealing with wagon disputes due to dwindling subscriber numbers, and panicking in front of the TV. Netflix is ​​the future of TV. Over the past few years, Netflix has gone from a solid streaming service to an insurmountable part of the culture of ideas. It has developed a late origin hit – what happens to other people, Wednesday, squid game, night agent if we are generous – which gives at least on HBO appointment TV. This has been proven, through the Paul / Tyson fight and the Tom Brady roast, to generate more cultural events or nothing. It pulls NFL game days bare and waits for billions of dollars, which is one of the biggest cables, to the platform. And below that, it has created a huge library of reality shows, cooking competitions, and TV shows that can be used from a TV position that is practically insurmountable. Now, for the price of a Netflix subscription, you get high-end, low-end movies, sports shows, and reality shows all in one place. You don’t want it all, but you pay for it. That, my friends, is called a cable bundle. And still the best business of the entertainment industry has sprayed. The average price of a basic cable subscription in 2006, the year before Netfix started streaming content over the Internet, was between $40 and $50. People watched something like four hours of TV a day, which means they probably watched about hours of advertising each day. Today, Services Like YouTube TV and Comvast’s Sports and News Bundle are $70 or more and only offer live programming. Meanwhile, Netflix subscribers watch two hours of the service a day, in all these categories, and pay as little as a tenth of the price. Many people don’t see ads. Think of the savings! Netflix sure sees it that way. Greg Peters, the company’s CE-CEO, said this week’s earnings call that he is optimistic about Netflix’s long-term monetization opportunities. ” “We get, now only 6 percent of the revenue opportunities in the countries and segments we currently operate,” he said. “And if we continue to deliver to improve the variety, the quality of our TV and movies gradually, we will be able to increase that offer with newer types of content, we will be able to increase it successfully every year.” Translation: Netflix is ​​coming for your entertainment diet. And your entertainment budget. , and acquisitions. All amounts That’s one easy question: Do you use Netflix? The answer, so far, is almost certainly yes it’s hard for anyone. So it’s going to push the limits. Another way to understand the pricing strategy is that Netflix is ​​like you have an ad-supported plan. The company has said repeatedly that it makes more money on a combination of smaller monthly fees and advertising than it does from larger subscription prices. A large percentage of new subscribers opt out of ads — about 55 percent in the most recent quarter — and Netflix is ​​starting to test exactly what subscribers will pay to stay free. It’s no accident that the price of ad-free only jumps two and a half times as much as the base price. And remember: even if we all switch ad plans, prices may go up. Cable is already expensive and filled with ads, after all, and Netflix sure likes the business model. Ted Sarandos, Co-CEO of the Company, indicated this week that the company is more open to the NFL Christmas sports and the Paulus/Tysonson fight. The company is growing more and more video games, which account for many other people’s entertainment budgets. Netflix even began to borrow tactics from YouTube and Tiktok, bringing creators like Miss Rachel to the platform. Reed Handings, who famously said that Netflix’s competitors are sleepers. Sleep is still a very good market force, to be fair. And YouTube continues to be a more dominant force in people’s video-viewing experience. But Netflix has risen above everyone else – even if it’s an incredible competitor now the show license for Netflix because of where the culture is, and it’s definitely not gone, but it’s definitely not there, but Netflix has won. The only question left is exactly how widespread the victory will be. And you better believe Netflix will figure it out.

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