Another price hike could be in store for Netflix subscribers. Streaming companies are always looking for ways to maximize revenue for stakeholders, and one of the easiest ways to do this is by raising prices. With all the costs that go into creating and licensing content, you can understand why companies need to raise costs. The majority of streaming services only cost a few bucks a month, but those prices will continually go up to the point that customers will have to make hard choices on which streaming services to keep. Netflix recently raised prices in the United States, U.K., and France customers in October, and is now hinting that even more increases could be coming.
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Ahead of its Q4 2023 earnings call, Netflix sent a letter to shareholders that brought up the subject of a price hike. “Over the last few years we’ve increased sophistication on our pricing and plans strategy so that we can more effectively capture the value created by our service,” the letter reads. “First, pricing. We seek to provide a range of prices and plans to meet a wide range of needs, including highly competitive starting prices. 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.”
Netflix reveals new pricing for plans
The price increases for Netflix subscribers affect anyone paying for the “Basic” or “Premium” plans of the service. The “Basic” plan, which is no longer available to new members, is the lowest ad-free tier that Netflix offers. That subscription has cost subscribers in the Unitated States $9.99 a month, but was increased to $11.99. An even steeper hike came for the “Premium” plan. That tier, which allows users to stream in Ultra HD and download on up to six devices, went up from $19.99 a month to $22.99 a month.
There is some good news, however. Netflix’s other two plans are currently set to remain at the same subscription fee. The ad-supported plan will continue to cost $6.99 each month, while the “Standard” plan will be staying at $15.49 per month.
In the U.K. and France, the “Basic” plan is going up to 7.99 pounds and 10.99 euros per month, respectively, while the “Premium” is going up to 17.99 pounds and 19.99 euros.
Netflix gains rights to WWE Raw
The other big Netflix news for the day involves WWE. The company’s flagship program, WWE Raw, will be moving to Netflix starting in January 2025. This will be the first time Raw isn’t on linear television since it debuted over 31 years ago. Netflix will be the exclusive new home of Raw in the U.S., Canada, U.K. and Latin America, among other territories, with additional countries and regions to be added over time. Netflix subscribers outside the U.S. will be able to watch all WWE shows and specials as available, inclusive of Raw and WWE’s other weekly shows – SmackDown and NXT – as well as the company’s Premium Live Events, including WrestleMania, SummerSlam and Royal Rumble. This also includes original series, documentaries, and any future projects.
“This deal is transformative,” said Mark Shapiro, TKO President and COO. “It marries the can’t-miss WWE product with Netflix’s extraordinary global reach and locks in significant and predictable economics for many years. Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE, and brings weekly live appointment viewing to Netflix.”
“We are excited to have WWE Raw, with its huge and passionate multigenerational fan base, on Netflix,” said Netflix Chief Content Officer, Bela Bajaria. “By combining our reach, recommendations, and fandom with WWE, we’ll be able to deliver more joy and value for their audiences and our members. Raw is the best of sports entertainment, blending great characters and storytelling with live action 52 weeks a year and we’re thrilled to be in this long-term partnership with WWE.”
“In its relatively short history, Netflix has engineered a phenomenal track record for storytelling,” said Nick Khan, WWE President. “We believe Netflix, as one of the world’s leading entertainment brands, is the ideal long-term home for Raw‘s live, loyal, and ever-growing fan base.”
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