![]() Source: The Verge What Would Beansprout Do? Netflix’s price hike mirrors the stances taken by Netflix’s peers in recent months.Īpple has also raised its Apple TV+ to $9.99/month, while Disney+ has similarly raised its Disney+ Premium plan prices to $13.99/month.įrom the price hikes, it would seem that cost of producing content is not cheap and companies like Netflix would want their subscribers to pay more for their favourite shows. Netflix has raised its prices in US, UK and France in its latest round of price review. #4 - More price hikes comingĭuring its third quarter results, Netflix announced that will be increasing prices on its plans.įor instance, the Basic plan will now cost $11.99/month, while the Premium Plan will set subscribers back by $22.99/month. In addition, Netflix has also been reducing its dependence on Hollywood for content by producing local content and shows, such as Squid Game and One Piece. There was hence much relief when an agreement was reached in September, ending a five month strike. It was estimated that 160,000 media workers in the US had joined in the strike which led to a close to a complete halt within the industry.Īs Netflix and other media companies depend on producing and streaming content to keep subscribers engaged, there were concerns that Netflix would run out of fresh content for viewers. The of the strike was to demand better pay and renumeration for those working behind the scenes to produce shows for viewers. One of the biggest issues that emerged within the media industry since May was the strike by the Hollywood screenwriters, producers and actors. Source: Netflix #3 - End of Hollywood strikes The North America market is a crucial market for Netflix as its average revenue per subscriber is the highest at $16.29 per month. Investors have cheered how Netflix has introduced a price plans with ads and more expensive plans without ads working without impacting its subscriber base significantly. The number of paid Netflix subscribers have shown another quarter of good growth of net addition of 1.75m in the 3Q23 to 77.32m. In its latest third quarter results, Netflix disclosed that ad-supported memberships have increase 70% compared to the previous quarter.Ĭoupled with Netflix’s move to clampdown on password sharing between subscribers living in different households, this has partly help to drive subscriber growth for Netflix #2 - Paid membership in North America showing growth again This move is also crucial for Netflix to segment its subscribers between those who would like to skip ads and pay more, and those who are not willing to pay. While still in its early days, advertising revenue could play a more important role in the company’s earnings in the future as more companies advertise with Netflix. Subscribers will be shown an advertisement of 15-30 seconds before and in between shows, similar to what most consumers are experiencing on Youtube. Netflix first introduced a cheaper basic plan at $6.99/month in Nov 2022 to open up an additional source of revenue – advertising. Source: Webull as of November 2023 What you need to know about Netflix #1 - Introducing advertising and clamping down on password sharing More, Netflix’s share price rallied 16% following its third quarter results as it reported subscriber growth in key markets and a price hike on its membership plans. Its share price surged close to 90% from 2020 to its peak share price of $700 in end 2021.ĭuring this period, Netflix benefitted from lockdowns globally as consumers were forced to stay at home and turned to Netflix as the main source of entertainment.Īs the world reopened, Netflix’s share price plummeted to a low of $175 in June 2022 on the back of slowing subscription. Source: Netflixĭespite its leadership position, Netflix’s share price has seen its fair share of volatility. This would put Netflix just behind Youtube, but ahead of other video-on-demand competitors such as Amazon’s Prime Video, Hulu and Disney+. In fact, Netflix has a 7.8% market share of TV screen time amongst US viewers as of September 2023. ![]() Netflix has changed the landscape of content entertainment.Īs a subscription video on-demand streaming business, Netflix offers a wide range of content to consumers. ![]()
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