It wasn’t long ago that Netflix raised subscription prices for its customers. It has now been announced that this may not be the end of the story. There is a reason for the corporation to ask for more money.
Weak on the chest: Netflix is no longer growing as fast
Despite the price slide, because the shareholders had expected even better numbers, Netflix cannot complain about the deal. Around 4 million new subscription customers were won over in the first quarter of 2021 – a decent plus, but less than planned. This emerges from communication to shareholders of Netflix.
Netflix attaches particular importance to one thing: the rate of churn – i.e. the loss of customers in favor of competing providers – has decreased year-on-year, which is associated with the improved service. The calculation is simple: a good offer ensures that customers who have purchased a Netflix subscription stay with Netflix.
A better deal for more money: Netflix’s strategy
From this, the group draws a conclusion that should make all customers sit up and take notice: “We also see how much the members appreciate Netflix. This shows us that as we improve the service, we can ask for a little more. Netflix interprets it is successful course as a sign that customers will also be prepared to pay more in the future. Officially, no price increase has been announced at the moment, and the last one wasn’t long ago either. But Netflix’s strategy seems to be heading in precisely this direction. Above all, you want to improve yourself with new content, including the new seasons of “Sex Education” and “The Witcher”. But also in the film segment, “Red Notice” is supposed to ensure that customers stay with them and then, if necessary, accept higher monthly fees. A date is not known that there will be any further price increases, but it is very likely.
Netflix is not alone in this approach. Disney + had recently raised the prices for streaming and also charges extra costs for premium access to films such as Cruella and Black Widow.