Netflix is claiming that it is improving its content, such as adding WWE Raw for 10 years, and the added content necessitates a price increase. Despite its crackdown on password sharing back in November 2022, Netflix has more than 260 million global subscribers after adding 13.1 million in the fourth quarter. This is the company’s most significant fourth-quarter addition. Netflix’s prices have not gone up since 2022, so they feel “As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service,” the company told investors.
As a consumer it is unfortunate they will more than likely be raising prices of subscription, but I am more interested to dive into the logistics of 'Netflix Games'. These mobile games and applicationthey offer are high quality games and entertainment on top of the other services they are currently providing. I agree with Netflix in raising their price point.
ReplyDeleteAs a consumer, I agree that this is quite unfortunate, especially in scenarios where one Netflix account can have multiple sub-accounts, but you can only use those accounts if you are on the same internet connection as your home wifi. From a business stand point I agree fully with what Netflix is doing because with inflation and things of that nature they must increase their price to stay afloat.
ReplyDeleteNeflix raising prices makes me think of that effects it will do their numbers of subrscribers. With so many other competitors like Peacock, Max, Hulu, and other streaming sources that are already running for cheaper, I expect a lot of price concious customers to leave for other competitors as Netflix raises prices. While it makes sense for Netflix to implement these policies, from a customer standpoint I think that Netflix needs to add more value to the product if they want to hike up prices.
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ReplyDeleteNetflix's latest strategy to increase prices in 2024, while emphasizing content improvement like the addition of WWE Raw for a decade, is an intriguing move. It's noteworthy that despite the crackdown on password sharing in late 2022, Netflix has managed to grow its global subscriber base to over 260 million, with a remarkable 13.1 million additions in the last quarter alone. This growth trajectory, especially the record-breaking fourth-quarter spike, speaks volumes about the platform's enduring appeal.
ReplyDeleteThe decision not to raise prices since 2022, and now planning a hike, is presented as a necessary step to continue investing in and enhancing the Netflix experience. The company's rationale, stating that occasional price adjustments are essential to reflect content improvements and drive further investment, does hold merit. It's a delicate balance between maintaining subscriber satisfaction and ensuring the platform's financial sustainability and growth.
As a subscriber, I am curious about how these changes will impact the overall user experience. Will the increase in price translate directly into more high-quality content and better service? Or, will it lead to subscriber discontent and potential drop-offs? This move puts Netflix at a critical juncture where its future growth strategy will be closely watched by investors, competitors, and, most importantly, its subscribers.
In reading the article, I think it is very interesting that Netflix would pay 5 billion dollars for just 10 years of one type of entertainment. Netflix must have looked at the demand, and found the risk worth the possible benefits of having WWE raw. This makes me wonder how they decide on what to add and take away from the streaming service because they own such a large vault of entertainment mediums. I was also interested in the prices because $15.49 - $6.99 in my opinion is reasonably priced. If you think about it, a subscription for a month is anywhere from one to three coffees a month from Starbucks, and at least for Netflix you have a very large access to entertainment all month long. I just think the problem they are creating is that consumers remember using Netflix when streaming wasn’t limited, there were no ads, and it was even cheaper, so now most users don’t see why they must pay more for the same situation they were paying for previously.
ReplyDeleteAs a consumer of Netflix, the price increase is understandable. The shows have gotten much better and every price is increasing, it is the nature of the economy.
ReplyDeleteAfter reading this article I'm curious as to if some of the price increase in a Netflix subscription could be due to inflation. Netflix is experiencing the same increased prices we are facing, meaning the sticker price of producing movies and purchasing rights to them is also likely going up. Perhaps the real price of a Netflix subscription is not that different from what it used to be, but nominal prices are quite different due to high inflation.
ReplyDeleteAs someone who uses and pays for Netflix, the price increase makes sense. I am interested to see what the community thinks of the additions to the service and if it effects Netflix as a company.
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