One of the big winners of the Corona crisis is without doubt Netflix. This is not surprising. Since many millions of people were not allowed to leave their homes, they spent their time streaming a series or a film. But apparently the economic profits are not enough for the company. So the streaming service in the USA has now adjusted its price list and increased the cost of subscription models.
Costs of standard and premium subscription increased
The coveted streaming service increases the cost of its standard subscription from $13 to $14. With the premium model, there is even an additional 2 US dollars. Instead of 16, subscribers here now pay 18 US dollars. Long-term subscribers are also subject to the price increase. Unlike new customers, however, the price increase does not affect them immediately. Here Netflix simply speaks of “soon”. It would be surprising if the higher costs only affected the USA. Since such changes are always first made in Netflix’s “country of birth”, we can safely assume that you will soon have to pay more in this country as well. So far, the costs for a German subscription are still 11.99 Euro (Standard) and 15.99 Euro (Premium). We could already observe a similar procedure with the streaming service at the beginning of the year. First the prices in the USA were increased, and shortly afterwards our subscription costs were hit. Whether and when a cost increase in this country will come, however, is still uncertain. Netflix has not yet commented on this.
What is the economic plan of Netflix?
It’s almost like Netflix testing the limits of its users. With an unparalleled amount of exclusive films, series and documentaries, the company has been able to generate many millions of users in recent years. But exclusivity also has its price. Unlike in the past, Netflix can no longer buy only pre-produced films and series. Instead, the streaming service must shoulder the production costs independently. But with the release of Disney+ at the latest, it has become clear how important exclusive content is on the streaming market. This is the only way to conceal in the long run that we cannot offer Star Wars or The Lion King. The only question is up to what point the users will go along with the price increase. Especially if Netflix continues to implement it so regularly.