Shulou(Shulou.com)05/31 Report--

Every year, the cost of streaming becomes more and more expensive-just last week, prices began to rise again. Netflix announced that new users at all levels will get an immediate price increase, raising its most expensive plan to $20 a month. This is the third price increase since 2019.

Netflix's standard package is $15.50 per month, which is now slightly higher than HBO Max ($15 per month) and Disney Bundle (including ESPN Plus and Hulu, $14 per month), making it a leading service among the most expensive on-demand streaming options. If you want 4K, it will become more expensive. This is not a small number, according to recent Deloitte data, considering that people tend to have about four paid streaming subscriptions.

While price increases are painful for consumers, it is certain that they will continue to rise-especially for Netflix. Growth opportunities are stagnant and the company's spending on content continues to grow. To keep pace, Netflix must either increase the number of subscribers paying for its services or demand more money from existing customers. Now, Netflix knows it can.

"they are doing well, but over time, they will continue to tighten their finances," Paul Erickson, a senior analyst at Parks Associates, told The Verge. "this is the basic way they do this-prices change slightly over time. Because they feel deeply ingrained and their customers are loyal, they don't think it will have a significant impact on their subscriptions."

"the money must come from somewhere."

One of the main reasons Netflix needs money is to pay for new shows and movies. According to Ampere Analysis's estimates, streaming services have spent quite a lot of change on original programs, and global spending is expected to exceed $230 billion by 2022. Ampere positioned Netflix as the third-largest investor in video content, after Disney and Comcast, which both invested in expensive sports rights, the company noted.

By investing a lot of money in original programs, anchors hope to attract not only existing customers, but also new subscribers. For Netflix, expanding its programming across types and categories helps it become everything to everyone. Growing investment in scripting, unscripted, animated and live-action programming combinations helps ensure that Netflix maintains monthly subscriptions.

"the more they serve all different aspects of different families-whether it's language specificity, market specificity and lifestyle specificity-the better," Eriksson said. This gives Netflix reason to position itself as a core and must-have entertainment service. If there is any sign of its more than 200 million paying users, the strategy is working.

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