Netflix is poised to raise subscription prices again in 2024 according to analysts, as the streaming giant continues to see positive momentum after a challenging 2022.
Research firm UBS predicts Netflix will implement further price increases this year, on the heels of hikes in the US, UK and France in late 2022. While Netflix has not officially announced specific plans, executives have indicated they are resuming their normal strategy of periodic price hikes after pausing during the rollout of the new ad-supported tier.
Netflix enjoys strong pricing power compared to competitors like Hulu and Peacock, charging on average 30 cents per ad-free viewing hour versus over 50 cents for rivals. With hit shows like Wednesday driving increased engagement and subscribers up 20 million in 2024 by UBS estimates, Netflix likely feels confident customers will pay slightly more.
The streamer has steadily raised prices over the years, including a $1-2 increase across plans in early 2022. But 2022’s subscriber losses led Netflix to finally offer an ad-supported plan for $6.99, the first time it has had a cheaper option. For years, the non-ad Basic plan started at $9.99, but it rose to $11.99 in late 2022.
While incremental, these price hikes add up substantially over time. Long-term subscribers grandfathered into older cheaper plans have seen costs double or even triple over 5+ years. But with strong projected revenue growth and viewership gains, Netflix may continue nudging prices higher in pursuit of greater profits per user.
Analysts predict modest hikes of $1-2 could hit various plans in late 2024. While disenchanted subscribers may cancel, Netflix is betting its growing content library will retain most customers even at slightly higher monthly rates.
