![]() ![]() During COVID-19 lockdowns, streaming services benefited from more people staying home and using the TV and movie platforms.Īs quarantine mandates have relaxed, the streaming services market has seen a slower household broadband growth. Additional considerations include an increasingly competitive and crowded environment and loosening of pandemic restrictions. Cracking Down On Password SharingĪmong the price increases are a handful of factors influencing the platform’s market growth. Currently, it’s the worst-performing stock of the year in the S&P 500, marking a nearly 63% year-to-date drop. The drop in shares caused the streaming platform to lose over $50 billion from its market cap. Following the announcement of the price increase, shares of Netflix dropped over 35% in 24 hours, and it lost a significant amount of subscribers for the first time in over a decade. Netflix most recently raised eyebrows when it upped its monthly pricing for higher resolution streaming – so much so that it caused Netflix stock (NFLX) to collapse. Since then, prices have continued to increase every couple of years, with the basic plan now costing $9.99 per month, the standard plan $15.49, and the premium plan (which includes HD and Ultra HD) $19.99. In 2014, it unrolled its first wide-scale price increase, going from $13 to $14 per month for a standard plan (they let existing members retain their original plan pricing for two years). But the damage was done – many subscribers had already decided to cancel their memberships. The company quickly backtracked and offered its DVD rental service at a lower price. Netflix’s 2011 price hike, for example, led to a loss of 800,000 subscribers. A Past of Pricing ChangesĪ perceived price hike may hurt some of Netflix’s brand value, especially with a past riddled with poorly messaged pricing changes in the past. Why would they leave so much money on the table when almost all new TVs sold are 4k and most streaming subscribers have high-speed internet? However, it does not advertise this upgrade. ![]() ![]() Netflix is the only major streaming service that charges an extra $4.50 for 4k resolution. However, as the streaming giant introduces pricing increases for higher quality content, most recently its UHD/4K content, it could end up alienating a fair share of its user base and cause them to question and reconsider what drew them to the service in the first place. Traditionally, much of Netflix’s popularity stemmed from its “access all areas” policy, giving users access to everything available on its servers under a single monthly subscription plan. For Netflix, this has led to them testing price hikes in different markets. More platforms providing streaming services has created an increasingly competitive environment, leading to streaming wars filled with pricing pressures. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |