Incremental Price Hikes on the Horizon
Netflix, in its letter to shareholders, has indicated that it’s likely to continue increasing the prices of its subscription plans incrementally. This strategy is part of the company’s broader plan to monetize its services further. These price adjustments are aimed at reflecting improvements and investments made in the streaming platform.
Ad-Supported Plans and Basic Account Changes
The introduction of ad-supported plans over a year ago has been successful for Netflix, with 40% of new sign-ups opting for these accounts. Netflix plans to further phase out the ad-free Basic plan, starting in Canada and the UK from the second quarter of this year.
Addressing Account Sharing
Netflix has also successfully tackled the issue of account sharing across different households. With password sharing now restricted, the company has introduced the ‘Extra Member’ feature, which requires an additional fee for users outside the primary account holder’s household to access the service.
Possible Extensions to Gaming Business
Looking ahead, Netflix may also extend its monetization strategies to its gaming business. While the current library of games is free of ads and microtransactions, this could change in the near future, aligning with the company’s overall monetization efforts.
