STREAMING: A price increase of one or two euros could be announced by Netflix on October 20th
The current leader in streaming services could very soon review its pricing plans upwards. This is in any case what analyst Alex Giaimo , of the American investment bank Jefferies, told the Deadline site. An increase that would be of the order of one or two euros.
A rather slight price increase, therefore, but which could still be difficult to pass to subscribers of the streaming platform as the price increases seem regular at Netflix. When we take a closer look, we can see that the American firm has revised its pricing plans almost every six months for several years, with 2020 being the exception. The containment and the boom of streaming services are certainly there for something.
In the end, an increase of one or two euros every six months, that can start to make a lot, especially since the competition offers much more accessible subscriptions. Disney + is in fact available for only 6.99 euros per month and offers a nice, well-stocked catalog, even if exclusives are rare. As for Apple TV + available at a price of 4.99 euros per month, the exclusives are more numerous, but they alone constitute the whole of Apple’s streaming service. So we quickly got around it.
Nothing is less sure
But keep in mind that it is currently only a speculation based on the change of speech of the American firm. Alex Giaimo has indeed raised that Netflix had been very opposed to a new price increase in the first quarter of the year, but according to the analyst, the speech had evolved on the issue during the second quarter. An upward revision of Netflix’s pricing plans was finally possible.
If the streaming platform increases the price of its subscriptions by one or two euros, given the number of its subscribers, the firm could garner nearly a billion dollars in turnover in just one year. An idea that has something to seduce, especially when we know that Netflix invests without counting in the production of series, documentaries and original films for its platform. The streaming service does not hesitate to go into debt to finance its projects. This is why the platform regularly reviews the price of its subscriptions upwards, just to replenish the funds.
So, will Netflix increase its prices again? It should be set for October 20, when the US company will announce its third-quarter 2020 results.