Netflix Considering Price Increases Following Crackdown on Password Sharing

According to a recent Reuters report from October 16, Netflix’s efforts to put restrictions on password-sharing potentially contributed to a rise of around 6 million subscribers during the third quarter. The company considered the sole profitable major streaming service, has refrained from increasing ad-free prices, unlike competitors such as Walt Disney. It limited password-sharing to tap into the vast user base, estimated at over 100 million, who access the platform without subscribing.

Analysts at Bernstein highlighted that Netflix is increasingly resembling a utility in several markets, posing a challenge to the company’s sustained growth as it matures. A recent media report suggested that Netflix might consider raising its prices after the Hollywood actors’ strike, which recently concluded after five months of disruption.

Despite the strike’s impact on the entertainment industry, Netflix navigated the situation successfully due to its robust international presence and compelling content lineup. While its advertising plan initially had a sluggish start, analysts anticipate that Netflix will likely increase the prices of its ad-free subscription options in the near future. This strategy aims to encourage more subscribers to opt for the alternative tier, which incorporates advertisements and consequently generates higher revenue per user.

Furthermore, it has been observed that most of the new subscribers acquired after the crackdown on password-sharing have favored the ad-free plans. Netflix’s ad-supported standard plan costs $6.99 per month, while the ad-free options start at $15.49 per month.

In conclusion, we are not sure if or when Netflix will make their service more expensive. But we do know they’re trying to generate more revenue. They might make it cost extra if you share your account with more people.

Netflix is also dealing with more competition from other streaming services, and it’s getting more expensive for them to make shows and movies. To stay the best streaming service, they’ll need to figure out how to handle these problems.

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Betty Carter

Betty is an enthusiastic Computer Science Graduate and an extrovert who loves to watch Netflix, and is a binge-watcher always seeking quality shows to add to her watch history! She loves to write about the show, she has watched, to make her readers acknowledge them, and witness a cherished time with friends, and family!