Netflix hints that a hike is coming and confirms the end of its cheapest ad-free plan in some countries.

After the challenges it faced in 2022, Netflix is ​​ending the final quarter of 2023 with a very positive result. The streaming giant added 13.1 million subscribers and beat Wall Street analysts’ estimates at the billing level. Despite this favorable scenario, all signs seem to indicate that change is ongoing.

In its quarterly balance sheet to investors, the company, co-founded by Reed Hastings, made clear that one of its goals for the year is continued growth. “As we invest in and improve Netflix, we sometimes ask our members to pay a little more to reflect those improvements,” part of the text reads.

Possibility of price increase

While Netflix hasn’t announced a price increase, the above statement indicates that one of the ways it can improve the service is by making customers pay more. But that’s not the only change coming. The streaming giant is also trying to boost its Standard plan with ads excluding the cheapest option without advertising.

For months now, Netflix has stopped adding new members to its basic ad-free plan in Germany, Spain, Japan, Mexico, Australia, Brazil, Italy, the UK, Canada and the US. However, existing subscribers can still continue to use this plan, which offers content on one device at a time in HD quality for €7.99 per month.

Now Netflix is ​​taking it one step further by ditching its low-cost, ad-free plan entirely. All subscribers in Canada and the UK who are still subscribed to the plan. Basic without ads They will have to choose an alternative in the second quarter of 2024. This is because in these markets the plan will simply disappear completely.

The options that will be on the table will be Standard Plan with Ads, Standard and Premium. It’s worth noting here that Netflix intends to banish the basic ad-free plan from all markets that have ad-supported plans. This means that sooner or later this type of plan will disappear for existing members in Spain as well.

Netflix ends 2023 with strong quarter

Almost two years ago, we saw Netflix lose subscribers for the first time in a decade. In the first quarter of 2022, the streaming giant announced a reduction 200,000 paid subscribers and warned investors that the decline would continue into the next quarter, a scenario that eventually materialized.

Following the subscriber churn, the firm made some notable changes to its strategy. It launched its low-cost, ad-supported plan, updated its pricing and stepped up its campaign against shared accounts. And the change in direction began to bear fruit. Now Netflix is ​​ending the year with a strong result.

As we speak, the company added 13.1 million subscribers in the period ending last December, and the increase has not gone unnoticed. Netflix itself estimated the increase at approximately 9 million subscriberstherefore, it beat its own estimates, which is a vital fact for a listed firm.

“This is our largest fourth quarter ever,” says the company, which now has about 256 million paying users. In addition, sales rose 12.5% ​​year-over-year to $8.833 million, also higher than the $8.710 million Wall Street analysts had forecast.

Images: Dima Solomin | Netflix

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