Netflix tells investors it will raise prices in 2024 – Telemundo Washington DC (44)
Expect to pay more money for Netflix.
You had to read page six of Netflix’s letter to shareholders to find it. But here it is. A scary phrase for price-conscious consumers. Loud applause for investors.
“As we invest in and improve Netflix, we sometimes ask our members to pay a little more to reflect those improvements, which in turn helps drive a positive flow of additional investment to further improve and grow our service,” he said. investors.
Netflix launched its ad-supported subscription plan in November 2022, ending password sharing to give users a cheaper way to access content from the world’s largest streaming service.
Not many people have signed up for this plan yet. Earlier this month, Netflix announced that its commercial plan has 23 million monthly active users. Evercore ISI analyst Mark Mahaney estimates that could mean 12 million to 15 million subscribers.
Netflix has more than 260 million subscribers worldwide after adding 13.1 million in the fourth quarter, the company’s biggest gain in the fourth quarter.
The bottom line for Netflix executives may be that most of their audience is happy to pay what Netflix charges. A standard Netflix subscription in the US currently costs $15.49 per month. The ad-supported plan costs $6.99 per month, the same price it launched at in 2022.
Netflix announced Tuesday that WWE Raw will be coming to the service in 2025. This is Netflix’s biggest foray into live entertainment. Netflix is paying more than $5 billion for a 10-year deal with Raw.
With more content, Netflix will be able to convince its users to pay more money. The company said it plans to increase its content amortization by a “high single-digit percentage year over year,” it said in a letter to shareholders.
Johns Hopkins Children’s Hospital will have to pay more than $220 million in damages to the family of a young woman whose mother committed suicide after receiving treatment at the hospital.
Disney plans to launch ESPN to consumers later this year or in 2025. This product will likely cost a lot more than Netflix. It would also give the company a reason to raise prices, as consumers may view Netflix as an even better deal than competing streaming services.
Netflix didn’t announce the price increase in its quarterly letter or say when it would happen. But rest assured: it will come.
This article was originally published in English by Alex Sherman for our sister network CNBC.com. To learn more about CNBC, go here.