Netflix subscription plans are expected to become more expensive in 2024. At least that’s what analysts at UBS, a global financial services company, point out. In Brazil, the most recent change in subscriptions came in October 2023, when the platform removed the ad-free basic plan, which cost R$25.50.
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Netflix currently offers three plans in Brazil: standard with ads (R$18.90), standard without ads (R$39.90) and premium (R$55.90). UBS analysts speculate that this year’s expected price increase will likely push Netflix’s revenue growth to 15%. In 2023, for example, growth was 7%. The information comes from Variety.
Also in October, Netflix increased the price of its Basic plan from $9.99 to $11.99 per month in the United States, as well as raising prices in France and the United Kingdom. To date, the company has not officially announced plans to increase subscription prices in 2024.
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During its fourth-quarter 2023 earnings call, Netflix co-CEO Greg Peters said the company had paused price increases while it implemented its paid sharing program. Now that the program has been implemented, Netflix resumes its standard approach to raising prices.
Citing data from Nielsen, UBS pointed out that Netflix’s share of US television audiences increased to 7.9% in January 2024 (in December it was 7.7%). The streaming platform has strong pricing power compared to other streaming services, with lower average prices per hour of consumption.
UBS also pointed to Netflix as the main beneficiary of structural changes in media, as traditional companies, faced with declining cable TV businesses, turn to the profitability of streaming. The new strategy includes price increases, platform consolidation and a renewed focus on content licensing.
UBS raised its estimate for Netflix subscriber additions in 2024 from 18 million to 20 million, reflecting continued momentum in subscriber trends. The company added 29.5 million new subscribers in 2023, above the annual average of 21 million between 2020 and 2022, after successfully rolling out its paid sharing program globally.
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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.
