Netflix expected to raise prices again this year

Netflix are expected to raise their prices again this year, according to a new analysis by investment bank UBS Securities.

Rumours about a possible price increase gained some ground at the end of January when the streamer released its quarterly shareholder letter, which contained details of a potential hike for subscribers.

The letter read: “As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service.”

Now, the UBS analysis indicates that price rises are likely to be imminent for Netflix subscribers. “We expect to see rate increases this year,” wrote John Hodulik, who works for the Wall Street bank (via Independent).

They predict the shift will contribute to an overall company growth of 15 per cent in 2024, compared to 7 per cent last year.

Currently, a basic subscription costs £7.99 a month, while a standard subscription in the UK, which allows for HD and a second device, costs £10.99 a month. The ad-supported subscription is £4.99 a month which, according to Netflix, has 23million monthly active users. In total, the streaming platform currently has more than 260million global users.

There is also a premium tier for Netflix, which costs £17.99 a month, and includes Ultra HD availability, spatial audio and the chance to watch on four supported devices at a time.

The inventory on the service may be set to increase, with WWE’s flagship programme, Raw, joining the platform in 2025. According to CNBC, the company is reportedly paying $5billion (£3.9billion) for a decade of the program. Featuring 52 weeks of live shows each year, this will become Netflix’s biggest step into the streaming of live entertainment.

Netflix has confirmed that this year will see the release of new seasons of hit shows, including Squid Game, Bridgerton and Emily In Paris.

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