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Quo Vadis, Netflix? The strategy behind its last price increase (Podcast Clear the X # 158)

How is the patio, hey. The latest Netflix price increase has made many of us remember: just four years ago we were still paying 11.99 euros per month for the Premium plan, and now we will start paying 17.99 euros, which is 50% compared to that original price.

This increase is remarkable, and makes it necessary to take stock of how the streaming market is in general and that of Netflix in particular. What is the strategy of this giant and how you justify the sustained rise in prices in recent years?

To talk about all this we have today in ‘Clear the X’ a John Tones (@johntones), editor in Engadget, already a server, Javier Pastor (@javipas), also editor in this house. The production is as always in charge of Saints Araújo (@santiaraujo).

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Netflix struggles to remain the great streaming benchmark

We pay more than ever for Netflix, and the latest price hike is already starting to make many consider deactivating the account occasionally. If they don’t, it’s because shared accounts ease the burden, but also because sharing them makes it more difficult to coordinate this joint deactivation and for all members of the account to resign from the service temporarily and at the same time.

Netflix, of course, raises prices to have more income and follow that gluttonous machine of generating content. Their ‘Originals’ need a lot of money to be able to continue being produced, and since subscribers no longer upload at rates of the past, it is necessary to make them pay a little more per month.

That Netflix pricing strategy contrasts with that of its competition: Apple TV +, Disney +, Amazon Prime Video and HBO follow different approaches both in their approach to the catalog and to prices, and some of these services – such as those of Apple or Amazon – are not by far the fundamental focus of the business of their parent companies.

The truth is that Netflix continues trying to justify that monthly fee not only with its production of original content, but also with diversification. The last example we have in mobile video games, still very far from being a really solid element of its offer, but that could end up being so in the future. A future in which, yes, the price of course begins to tighten the rope too much.

Every week a new chapter

And remember: every Thursday you have a new chapter of our podcast Clear the X, in which we thoroughly analyze the great technological topic of each week.

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