Netflix rates will not stop anytime soon

Whenever Netflix raised its prices – which happens almost the same amount that Ben Affleck loves to love a celebrity – the company always offers the same reason. It needs additional money, as you see, in order to continue to invest in the type of programming and the products that their 302 million subscribers demand. In this way, the record monthly price of Netflix has jumped from $ 7.99 to $ 17.99 throughout the year. Last 13 yearsIt includes A jump has just been announced During the company’s last profit report. There is still a monthly plan worth $ 7.99, of course, but it includes advertisements, which are more expensive in dollars than it was a week ago.

But let’s be real with each other. You want to know why Netflix It continues to raise its prices? Because it is possible. Because Netflix won. The rest of the direct broadcasting industry is fiercely competing for a limited group of money, and deals with transportation disputes due to the diminishing numbers of subscribers, and panic over the future of television. Netflix He is The future of TV.

Over the past two years in particular, Netflix has turned from a powerful broadcast service into an inevitable part in practice and almost cancellation of the prevailing culture. I have developed a list of successful original copies – Strange things,, Wednesday,, Squid game,, Night agent If we are truly generous – this gives him at least something that approaches the HBO appointment TV. Through things like Paul / Tyson and Tom Brady, they could create cultural events from almost nothing. I have made a day of NFL games without any obstacles and spent billions of dollars to get WWE Monday night crudeOne of the biggest continuous successes of the cable, on the platform. Under all this, she built a huge library of reality programs, cooking competitions, and other TV programs that make up most of our TV viewers.

Now, for the price of your subscription in Netflix, you can get a set of expensive films, advanced TV shows, sports and low -budget reality programs, all in one place. You don’t want everything, but you pay for it anyway. This, my friends, is called the cable pack. This is still the best work that the entertainment industry has ever created.

The average price of the basic cable subscription was in 2006, that is, the previous year for the start of Netflix to broadcast online content, ranging from $ 40 to $ 50. People have seen nearly four hours of television daily, which means that they may have seen about an hour of ads every day. Today, services Like YouTube TV and New news and sports news package It is worth $ 70 or more and only provides live programming. Meanwhile, subscribers to Netflix Watch two hours of service Every day, through all these categories, they pay up to ten price. Many of them do not see any ads at all. Think of savings!

Certainly, Netflix sees it in this way. Greg Peters, co -CEO of the company said The profit call for this week It is optimistic about “the opportunity to achieve long -term income” from Netflix. He said: “We are currently winning only 6 percent of the opportunities for revenue in the countries and sectors that we are currently serving.” “As long as we continue to improve diversity and the quality of our TV and movies list, we are gradually expanding the show with the latest types of content, and we think we will be able to gradually increase this share every year.”

Translation: Netflix comes to your fully entertainment diet. And your entire leisure budget.

Peters also said that while you look at high prices, Netflix takes into account signals such as participation, retaining and acquisition. All this is summarized in one simple question: Do you continue to use Netflix when the price rises? The answer, so far, was almost always yes. Thus, the prices continue to rise. It is really so simple. It is clear to Netflix it can impose more fees – and perhaps much more – and it is unlikely to leave anyone. So, of course, it will exceed the limits.

Another way to understand the details of the pricing strategy is that Netflix strongly wants to obtain that advertising -backed plan. The company has repeatedly said that it earns more money by combining monthly fees and smaller ads than it achieved from the largest subscription price alone. A large percentage of new subscribers choose ads – about 55 percent in the last quarter – and Netflix began testing the exact amount that the current subscribers will pay to keep Netflix free of ads. It is not a coincidence that the price free of ads jumped two and a half times compared to the basic price. And remember: Even if we all turn to advertising plans, prices may continue to rise. Cable TV is expensive and Fill in ads, Netflix certainly loves this business model.

Netflix continues to indicate that her ambitions are also growing. TED Sarandos, the other co -co -chief of the company, indicated in a profit call this week that the company is more open to live sports than ever, after the success of the NFL and Ball / Tyson. The company is increasingly enters into video games, which is a large part of the entertainment budget for many people. Netflix even started borrowing the tactics of YouTube and Tiktok, to bring creators like Mrs. Rachel to the platform.

Red Hastings, co -founder and former CEO of Netflix, said the main competitor of Netflix is ​​sleep. To be fair, sleep still constitutes a very strong market strength. YouTube continues to be a dominant force in the experience of watching the video. But Netflix has practically climbed over anyone else – even its apparent competitors are now licensing their offers for Netflix because this is the place where viewers are, where culture is.

Live broadcast wars were chaotic, and it is certainly not over, but Netflix has already won. The only remaining question is the richness of the spoils of victory. It is best to believe that Netflix will discover it.