Netflix, a leading video streaming service, is considering increasing the prices of some subscription plans.
This potential change might surprise users.
Over the past two years, Netflix’s user base has grown significantly, but the company has kept subscription prices relatively stable during this time.
Price Hike Expected by December
According to a report by Slash.com, research firm Jefferies predicts that Netflix may raise prices for its base and advertising plans by December 2024.
Jefferies noted that Netflix last raised the price of its base plan in January 2022, and the advertising plan remains the most affordable option in the market.
Changes to the Basic Plan
Jefferies suggests that the basic plan may see a price increase soon.
The company had previously raised the prices of its basic and premium plans in October 2023.
There is speculation that Netflix may discontinue the basic plan altogether and aim to boost its average revenue per user (ARPU) by increasing the price of the base plan.
However, Netflix has not officially confirmed these changes yet.
Reasons Behind the Price Hike
Jefferies suggests that Netflix’s base plan, which is currently the cheapest option available, is likely to see a price increase.
The company has not raised the price of this plan recently, which might be why an increase is anticipated.
Possible Discontinuation of Basic Plan
The report also suggests a strong likelihood that Netflix might end its basic plan.
In October 2023, Netflix only increased prices for its basic and premium plans.
The company aims to boost its average revenue per user (ARPU) by raising the base plan’s price, although no official announcement has been made yet.
