The No. 1 SVoD platform should soon present its third quarter financial results. While experts expect “strong” results, a major price hike is said to be imminent.
No. 1 streaming platform on the market with more than 270 million subscribers worldwide, Netflix has maintained its position as leader in SVoD despite the arrival of advertising, the end of account sharing and price increases which have been successful so far. According to VarietyNetflix would consider a general increase in its prices despite its good financial health.
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Paid account sharing is running out of steam
High-quality original productions, integration of 4K and video games… Netflix has never been doing so well and the platform continues to expand with, for example, the gradual arrival of live sport. In the United States, the platform has signed a partnership with WWE. Another example: the broadcast of a live tennis match between world No. 1 Rafael Nadal and No. 2 Carlos Alcaraz.
But despite a gain of 8 million subscribers in the last quarter and such encouraging financial results, several indicators point to a new increase in prices according to analysts. The first is paid account sharing which no longer brings in as much as when it was set up. More generally, the platform is facing a slowdown in its growth in the number of subscribers.
To counterbalance this slowdown, there is a solution: increase the average revenue per subscriber (ARM), and this involves either a deterioration of service or an increase in prices. The last hypothesis is the most plausible. Remember that the last increase took place in December 2023 and that Netflix was considering this new increase the following month.
According to experts, Netflix can afford to increase its prices as long as its subscribers continue to perceive added value in the platform. And this necessarily involves the quality and exclusivity of its content.
Soon the Premium plan at more than €20/month?
Currently, Netflix presents a price list with three subscription plans: Standard with advertising at 5.99 euros per month, Standard at 13.49 euros per month and Premium at 19.99 euros per month. If there is an increase, the Premium formula could exceed the symbolic bar of 20 euros per month. It is one of the most expensive SVoD platforms on the market.
Netflix, however, manages to maintain a solid subscriber base with its 5.99 euros per month formula, it remains to be seen whether this will still be the case after the increase. Today, growth remains a Netflix objective but it is no longer a priority. It is now profitability and profits that are the most important, and this works by continuing to offer content with high added value.
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Source: www.frandroid.com
