Netflix is expected to release its earnings on Wednesday (18th) and, according to Reuters, the event will set the stage for the already expected price increase of streaming plans. The presentation comes after the implementation of new password sharing measures which, according to analysts, despite all the controversy, increased the number of subscribers to the platform by around 6 million in the third quarter.
According to analysts at Bernstein, after a slow start to the ad-supported plan launched last year, Netflix will likely increase the prices of its ad-free options to attract more subscribers to the ad-supported alternative, which generates more revenue per year. user: So far, most viewers who have subscribed to Netflix since the password crackdown have opted for ad-free plans.
According to Insider Intelligence analyst Ross Benes, streaming should also focus on showing more ads for a longer period, reaching rival levels.
Using these tactics, Netflix will likely double its ad-supported audience in the next year.
Ross Benes, Insider Intelligence analyst.
Netflix and price changes
It is worth mentioning that, in February this year, in a strategy against industry trends, Netflix reduced its prices in more than 30 countries – at the same time it implemented new rules for password sharing, which included a additional cost.
However, the company’s real plan was to increase prices to generate more revenue, as revealed in the financial results. The arrival of a new subscription fee may simply be the fulfillment of the company’s original intention.
The post Netflix may announce price increases on Wednesday (18th); Understanding appeared first on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
