Netflix has upped the price of its service, which means you’ll now pay $15.49 per month for a basic plan. Premium subscriptions have gone up to $22.99 per month from $19.99, while the entry-level ad-supported package has remained fixed at $6.99 per month. Price increases are a natural part of life. In its Q3 announcement for 2023, Netflix said that revenue for the quarter was slightly higher than expected, which could be why the price increases have been relatively small.
Revenue Up, Prices Up
The clamp down on users sharing their subscriptions with multiple households has been largely successful, and executives have pledged to continue refining their model over the coming months. However, despite the positives, price increases have been introduced. As stated by Forbes, the decision to increase subscription fees is necessary to “deliver more value” to Netflix “members.” The report also highlights some of Netflix’s recent success stories, including the introduction of its ad-supported service. Subscriptions for the service are up 70% quarter-over-quarter, with 30% of sign-ups now choosing it.
This push towards innovation has, in some ways, justified the price increase, but is a Netflix subscription becoming too expensive? The company argues that the monthly fee is still “much less than the average price of a single movie ticket.” That’s certainly true, but the average customer no longer pays for one streaming service. Therefore, the cost of Netflix needs to be considered alongside the cost of Amazon Prime, Disney Plus, and other platforms.
Diversity is the Spice of Life
One way Netflix may be able to justify more price increases over the coming years is diversification. Closely linked to innovation, diversification opens the door to products and services that might not necessarily be within the company’s natural realm. This, in turn, can lead to more innovations that not only entertain existing customers but engage new ones. One industry that handles diversification particularly well is online casino gaming. The average top-tier online casino will regularly add new and diverse games. In 2023, crash games have become the latest way for operators to diversify their portfolio of offerings.
For example, crash games on LeoVegas, such as Aviator and JetX, sit alongside casino classics such as slots, blackjack, and roulette. Crash games are, essentially, a test of a player’s nerve. Aviator requires a player to make an initial bet and cash out before the plane flies off with their money. Unique twists like this diversify the options available to players and keep them engaged.
Don’t Get Stuck in a Singular Mindset
It’s a simple premise, but it’s one that casino players have taken to. By diverting from the norm, i.e. offering games that don’t fit into the traditional casino mold, operators have given their platforms new life. Netflix could, and should, adopt a similar strategy. The gaming example is relevant because Netflix launched its own gaming division in 2021. A press release stated that the goal was to create a “service for everyone” by introducing games to the platform.
Taking the plunge and creating in-app games is the first step towards diversification. However, as casino companies have shown, diversification is an ongoing process. If Netflix wants to justify future price increases and make more of its gaming division, it can’t focus on one thing. Starting with a certain type of game is fine, but that can’t be the end of it. Adopting a flexible mindset and constantly striving to offer something different should be the goal. Get this right, particularly in gaming, and consumers won’t rail against more price hikes.
Also Read: Explained: 25 Years of the Netflix Logo
