Netflix plans to raise prices following new members surge in 2024
Most of us use Netflix, Disney Plus, Prime Video or other streaming services day-to-day. Whether it's on in the background, a family movie night, or a bed-ridden sick day in front of the telly.
But would a rise in price tempt you to cancel your Netflix subscription?
Netflix has announced that it will increase subscription costs in the US, Canada, Argentina and Portugal. But does this indicate a possible rise in cost for Brits as well? And would this put people off keeping their membership?
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A study by Cardlytics found that only 28 per cent of respondents believe their paid TV subscriptions offer good value for money, while 22 per cent plan to cancel within the year, citing cost as the primary reason.
But a spokesperson for Netflix said there was "nothing to share right now", on the subject of a UK price increase this time round.
The second series of Squid Game and a boxing match between YouTube star Jake Paul and former world heavyweight champion Mike Tyson were reported factors in Netflix's massive increase in subscribers in 2024.
In the US, prices for almost all plans including the standard subscription with no adverts will increase. This basic package will rise from $15.49 to $17.99 (£14.60) a month.
Its membership with adverts will also increase by one dollar to $7.99, the BBC reports. In October 2023, both the UK and the US saw a price increase for Netflix plans.
"We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix," it said.
The company said it had more than 300 million subscribers in total by the end of last year. Netflix had expected to add 9.6 million new subscribers between October and December, but this target was well and truly smashed.
And this is the last time that Netflix will report its quarterly subscriber growth. It said that going forward it will "continue to announce paid memberships as we cross key milestones".
Netflix also streamed two NFL games on Christmas Day and is set to broadcast more live events including WWE wrestling. The company has bought the rights for the FIFA Women's World Cup in 2027 and 2031 as well.
A technology analyst at PP Foresight, Paolo Pescatore, said Netflix "is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals".
And this can't be doubted - the company's net profit between October and December doubled to $1.8bn compared to the same period a year ago, and sales rose from $8.8bn to $10.2bn.
So, we shouldn't be too surprised if our Netflix prices see a similar increase sometime this year or next.
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