Netflix co-CEO Greg Peters explains reason behind increasing plan prices
Netflix co-CEO Greg Peters explains reason behind increasing plan prices
Netflix co-CEO Greg Peters has explained what goes behind when the company decides to introduce price hikes on its subscription plans. In an interview with The Verge, Peters said the recent price increases for ad-free plans allow the streaming giant to invest in developing a wider variety of features and content, ultimately offering consumers more choice and value.
“[T]hey want a higher diversity of shows, they want more quality shows, so that's our job. If we do that well, we'll go back and occasionally ask members to pay a little bit more to keep that flywheel running,” Peters noted.
Netflix Co-CEO on ad-supported tiers
Peters also clarified that Netflix is not aiming to increase the number of viewers in the ads tier. He said, "It's definitely not the goal."
"What I would say is that our job is to add more value to the entertainment service that we are offering," Peters added.
This suggests that the company doesn’t want to steer users towards its ad-supported plan. Moreover, Peters also hopes to decrease the ad load over time to "provide higher-relevance, higher-value ads."
Talking about the costs and ad distribution, Peters said that it comes down to having "a set of prices with the right features so that basically we can attract more members around the world, and they can enjoy the incredible stories that we have available."
Netflix plan prices remain unchanged in India
In October 2023, Netflix increased the prices of some plans in the US, UK, and France. Basic and Premium plans went up by $2 and $3 respectively, to $11.99 and $22.99 per month. This was the second price hike for Netflix last year, but it only affected these two tiers. The ad-supported plan ($6.99) and Standard plan ($15.49) remain unchanged.
It's important to note that Netflix price increases didn’t apply in India, however, the company expanded its curb on password sharing in the country in 2023. Subscription prices currently range from Rs 149 to Rs 649 per month depending on the plan.
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