On January 14, Netflix announced a new monthly subscription fee for new subscribers. In 2022, Netflix is increasing the price of all of its plans. Last year, the streamer raised its subscription fees for the first time in more than a decade.
Netflix has raised the price of its monthly subscription plans, and some subscribers are already experiencing the increase. The basic streaming plan is now $9.29 per month, up from $8.88, and the standard plan that allows HD streaming is $15.49, up from $13.99. The company has steadily increased prices in recent years, and it raised them significantly at the beginning of 2022. You can watch Netflix on your computer, phone, tablet, or TV.
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It has a library of movies and TV shows to choose from. It ended Q3 at $11.82 per subscriber.Netflix is a streaming service for movies and TV shows.
Disney+’s ARPU fell 9 percent to $4.12 per subscriber in fiscal Q4, while HBO Max’s ARPU began to fall in Q3 2021 following the launch of the less-expensive ad-supported tier last June. Many of Netflix’s competitors, meanwhile, are seeing their ARPU decline globally as they seek scale in North America and expand into new markets. The consulting firm Omdia estimated last month that Netflix only had 4.4 million subscribers in India, compared to 74 million in the U.S. The “Standard” plan was cut to $6.60 from $8.55. Just last month Netflix slashed prices in one huge market where it has relatively low penetration, India, lowering the price of the “Basic” plan from $6.60 to $2.60, and its mobile-only plan to under $2. The new price hikes will only drive that figure higher.Īt the same time, the company is investing in lower-cost offerings in Latin America (where its ARPU was $7.86 per user last quarter) and parts of the Asia-Pacific region (where it was $9.60). With the latest moves, Netflix appears to be reorienting its U.S.-Canada market around maximizing ARPU (average revenue per user), the gold standard of subscription revenue metrics (Netflix refers to it as average revenue per membership).Īccording to the company’s last quarterly financial report, North America already had the highest ARPU in the world at $14.68, up from $13.40 a year earlier. That value-driven positioning allows the company to structure its pricing from a global perspective, offering cheaper plans in markets where it needs scale, while raising prices in mature markets to drive cash flow. 16 report, saying: “We view this price hike as coming from a position of strength, likely supported by strong engagement and viewership in the fourth quarter.”īut given increased streaming competition from companies like Disney, WarnerMedia and ViacomCBS, some investors worry that Netflix has less “pricing power,” meaning that it can’t push up the monthly service cost without losing some subscribers through ever-volatile churn.Ĭredit Suisse’s Douglas Mitchelson commented on price hikes even before they were announced, pointing out investor “concerns that Netflix will have a harder time raising prices when there is more competition in the marketplace.” But he also highlighted a counterpoint, arguing that “Netflix’s usage would suggest the service is a very cheap entertainment option, even for international households.”
“We think Netflix tends to raise prices when churn is low, and this could stimulate more bullish views around fourth quarter 20 net adds,” he wrote.Įvercore ISI analyst Mark Mahaney echoed that in a Jan. 18 highlighted that management’s decision to raise prices could be a positive sign for recent subscriber trends. 'Painkiller' Trailer Sees Uzo Aduba Taking on Purdue Pharma in Opioid Crisis SeriesĬahall on Jan.
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