Back in January, Netflix announced it’s price increase to users, which includes basic, standard, and premium price rates increasing from $8.99 to $9.99 for basic plans, and $13.99 to $15.49 for standard plans.
Since the pricing increase, Netflix has reported subscription cancellations for more than 200,000 subscribers. Out of 221 million global subscriptions, this number may seem like a small percentage, but when you consider projections of 2.5 million new users for Q1, investors may be backing out.
Users are growing expressively frustrated with the price increase, especially with other streaming service options like Disney+, Hulu, Peacock, priced as low as $10/month.
Netflix has announced that there will be a gradual increase for existing users, including their premium plans increasing from $17.99 to $19.99, allowing up to 4 TV’s/devices streaming at the same time, up to 4 devices for downloads, and unlimited movies and games showing in HD and Ultra HD.
Even with these seemingly great benefits, Netflix anticipates another 2 million subscribers cancelling during this current quarter.
Due to their slowing growth, Netflix is cracking down on password sharing and speaks to testing out a new subscription services that would charge users additional fees for passwords shared outside of the home.
As is that wasn’t enough change to take in, Netflix Co-CEO Reed Hastings announced ads will soon be incorporated into the service.
As of today, Netflix has pulled out of Russia, losing nearly 700,000 subscribers and stock is down 35%.
What do you think about Netflix price increase? Do you think the company can turn the ship around and see an increase in subscribers again? Let us know down in the comments.
