Netflix, the streaming behemoth, is expected to make some changes in its subscription prices yet again. Last year, the company raised its fees, and this trend may continue into this year.
Previous Increases
In the previous year, Netflix saw a surge in its subscription prices. For users in France, a leap in the rates was evident. The basic package witnessed a price rise from 8.99 euros to 10.99 euros. Similarly, the Premium package saw an increase from 17.99 euros to 19.99 euros.
Potential Rise in Prices
A study conducted by UBS Securities indicates that Netflix may opt for another round of price increments. The reason behind this move is to augment revenues. Netflix’s strong hold in the market enables it to raise prices without the fear of losing its subscribers.
Revenue Growth Forecast
As a result of the price surge, an increase in subscriber numbers, and additional gains from offerings integrated with advertisements, Netflix could experience a boost in its revenues. The company foresees a 15% rise in revenue by 2024, a significant increase compared to the 7% last year.
Predicted Subscriber Increase
Despite the potential increase in subscription fees, Netflix anticipates a surge in its customer base. The company expects to add 18 to 20 million new subscribers in the current year.
Executive’s View
Last year, Greg Peters, an executive at Netflix, dropped a hint about the possible price increase. He mentioned that once the programme to terminate account sharing is put into effect, the company can revert to its standard practice of periodic price hikes.
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