Netflix will be reaching even deeper into your wallet sometime in the near future. After increasing the price of the Basic plan from $9.99 to $11.99 per month in the U.S. last year, another Netflix price hike is expected to hit in 2024.
The expected price hike was revealed in a Feb. 27 research note by analysts at UBS Securities. In the note, per Variety, the analysts said, “We expect to see rate increases this year” by Netflix. No specifics were given, such as when exactly the potential price hike could go into effect or how much the price of the various subscription tiers would increase. The anticipated price hike, in addition to a ramp-up in revenue from its ad-supported tier and subscriber gains, is expected to push the company’s total revenue growth in 2024 to 15%. The company’s revenue growth in 2023 reached 7%.
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Although Netflix hasn’t confirmed any price increases for 2024, theanalysts’ note comes just months after the company revealed plans to introduce new price hikes in the coming year. In a letter to shareholders ahead of its Q4 2023 earnings call, according to ComicBook.com, Netflix said it will “occasionally ask our members to pay a little extra.”
“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 read. “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.”
Meanwhile, during a recent earnings call, Netflix co-CEO Greg Peters told analysts that “we largely put price increases on hold while we were rolling out the paid sharing work because we saw that as a form of substitute price increase. Now that we’re through that, we’re able to resume our sort of standard approach towards price increases.”
Any new price hikes will come after the new increases implemented in October 2023 for U.S. subscribers. Under that price hike, the company increased the cost of its Basic plan, which new subscribers are no longer eligible for, from $9.99 per month to $11.99 per month. The cost of the Premium plan jumped $3 to $22.99 per month. The November price increase did not impact the Standard plan, which costs $15.49 per month, or the entry-level, ad-supported plan, the price tag of which has remained at $6.99 since its 2022 launch. The company also increased prices in some European markets last year.
