Long-time Netflix users are now experiencing the service’s most recent price hike, which was implemented earlier this year. And these users aren’t happy—in their mind, Netflix could save money if it stopped launching and canceling so many new shows. Well, a Netflix price drop may arrive at some point, but not for the reasons you hope.
During a March 8th investor conference, someone asked Netflix CEO Spencer Neumann if the company would launch an ad-supported streaming plan. Neumann had previously shot down the idea, but now that services like Disney+ are dipping into the ad-supported model, the Netflix CEO has changed his tune.
Spencer Neumann now says “it’s not like we have religion against advertising … never say never.” While the CEO clarifies that an ad-supported Netflix membership isn’t in the cards just yet, one such plan could arrive in the future. The only thing stopping Netflix, according to Neumann, is that it already has “a really nice scalable subscription model.”
In what is easily the worst marketing communication of all time, @netflix sends an email essentially stating they are doing customers a favor by raising prices. Can't make this shit up. Laughable. pic.twitter.com/CZRcPGhg5q
— Dennis Cox (@DennisCoxCT) March 3, 2022
But customers may disagree that Netflix’s subscription model is “really nice” or “scaleable.” The Standard Netflix membership now costs $15.49 a month, which is quite a lot of money.
According to a Netflix email, its recent price increase will “deliver even more value” for customers, and help fund “stories that lift you up, move you, or simply make your day a little better.” But Netflix canceled over 20 original shows in 2021; the company is on a constant search for smash hits, and that search costs a lot of money. Many customers believe that a more level-headed business model would prevent future price hikes.
There’s no telling what Netflix will do in the future. That said, a price decrease seems impossible. If we ever get a cheaper Netflix plan, it will probably be ad-supported, and it will only come if Netflix’s “stable” subscription model grows less successful for the company.