Last Updated: October 18, 2023, 08:30 IST
Netflix has seen its plan to stop password sharing work in its favour as more than 6 million new subscribers have been made since the crackdown was activated. But the video streaming platform is now planning for another major change which could spell bad news for Netflix users.
Netflix will soon share the earnings details with the media, and after deciding against hiking the prices of its plans, the video platform could now make the changes and force people to pay more for its content in the near future.
As mentioned in a Reuters report, Netflix could increase the subscription prices in major markets, banking on its decision to curb password sharing and bringing millions of users to pay for its service in the past 12 months. The report highlights that Netflix has managed to get more than 100 million users to pay for its service, which it sees as a vindication to block password sharing among people. And now the company wants to boost its revenue and the plan to increase subscription prices will definitely help with its plans.
Netflix is likely to increase the price of the ad-free plans in the coming months. It has been pointed out that most of the new viewers have opted for the ad-free plans, which allows Netflix the room to hike the prices and help its business flourish as the competition stutters. The price revision is expected to be made after the strike by Hollywood actors ends, and countries like the US and Canada could be the first to see the change.
But the report doesn’t talk about the possible price hike in Netflix plans and how much more people would be expected to pay. Having said that, we don’t expect Netflix to make such drastic moves in countries like India where it continues to find the right formula to succeed and get more people to pay for its content.
Meanwhile, Disney+ has also prescribed the ad tier plan for users and also increased the price of its plans as it looks to revamp its business model and get more money into the company’s coffers.