So, with the gradual price hikes, Netflix might see more subscribers moving to an ad-supported model in the future. It even saw an increase in its subscriber base by 8.8 million. To counter that, Netflix launched its ad-supported tier, offering people its cheapest plan. So, the overall monthly and yearly cost of entertainment has risen exponentially for the average viewer. Another reason why Netflix now feels so much more expensive in 2024 is that many people also pay for other streaming services. Netflix will also be paying more to actors and writers after the recently renewed WGA and SAG-AFTRA deals. The reason Netflix is so expensive is because it continues to increase the number of projects it offers its subscribers. Meanwhile, it doubled the Premium 4K supported plan pricing, going from $11.99 in 2013 to $22.99 in 2023. Although Blockbuster dominated the home entertainment market, it was also associated with late fees and limited selections. In the late 1990s and 2000s, DVD rentals were becoming mainstream. The history of Netflix’s price increases shows that over the last decade, Netflix raised the basic 1 screen plan by $4. Netflix is a powerful example of using market penetration pricing to edge out a major competitor. Netflix operates on a business model where it has to increase its prices gradually to be profitable in the longer term. Netflix has become expensive because of multiple reasons including the rise in streaming wars, increased actor and writer royalties, and content output. But again, nothing is confirmed at the time of writing. But Netflix hasn’t officially announced it yet.Ĭonsidering that Netflix is already charging the highest subscription price compared to other streaming services, there is a chance for Netflix to delay its next price-raising window. But looking at a pattern that has been formed since October 2017, the service ups its subscription costs at intervals of 5 quarters (if the previous hike was in October) and 7 quarters (if the previous hike was in January).Ĭonsidering that Netflix’s prices were raised in October 2023, the next hike could come in January 2025. Netflix hasn’t announced any price increases for 2024. The business plans to increase prices in the future, often setting a time limit on the introductory rate. January 2019 – $8.99 (Basic), $12.99 (Standard), $15.99 (Premium) Penetration pricing: With this pricing strategy, a business sets a low price on a new product or service in an attempt to gain significant market share quickly.The following list shows the history of Netflix’s price increases over the years:
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