Following their recent crackdown on password sharing, Netflix experienced its highest subscriber growth in years. In response to this, they have opted to raise prices once again, the last price hike being in January 2022. The price increase, which raises Netflix’s basic plan from $9.99 to $11.99 and its premium plan from $19.99 to $22.99, has sparked a significant reaction from subscribers. But the question remains: is this price increase a smart business move or an act of corporate greed? The answer is a complex one, but it ultimately leads to a predictable conclusion.
Society undervalues art
The complexity arises from the fact that society often undervalues art. Arts and humanities programs are frequently the first to be cut in schools, despite evidence of their importance. Crafters often hear comments like “I can make this myself” at shows, and the rise of AI and changing media landscapes have led to job losses in creative fields. Additionally, piracy of films and shows remains rampant in the era of streaming. These examples highlight the tendency for people to want to enjoy art and entertainment without paying a fair price for it. However, the discussion surrounding the value of art is nuanced, and supporting artists by paying for their work is essential. While some may eventually acquire the skills to create their own art, it’s important to recognize the value of artists’ efforts and not dismiss their work with rudeness.
These examples may seem unrelated to the Netflix price increase debate, but they are symptoms of the larger issue at hand: the expectation of free or cheap access to art and entertainment. The question of whether Netflix is being greedy is closely tied to whether we, as consumers, expect art to be free.
The answer, somewhat unpopular, is both.
Netflix was justified in cracking down on password sharing because art deserves compensation. If you find value in Netflix’s content and binge-watch it, you should be willing to pay for it. However, the subsequent price hikes, right after experiencing substantial subscriber growth, raise suspicions of corporate greed. It appears as a classic case of wanting more when given an inch.
Netflix defended its price increase by stating in their Q3 earnings report, “As we deliver more value to our members, we occasionally ask them to pay a bit more.” However, the added value remains unclear. While Netflix invests heavily in programming, it’s essential to question what justifies the platform’s increased cost. Flagship series like “Stranger Things” are coming to an end, and others, like “The Witcher” and “The Crown,” are also concluding. Although some new content has been well-received, Netflix seems to be losing more scripted originals than it gains. The focus on licensing from other studios may be part of the strategy, but Netflix isn’t inspiring much confidence in its subscribers at the moment.
Netflix planned content in 2024 and beyond must be exceptional
For Netflix’s move to succeed, its 2024 and 2025 content offerings must be exceptional. However, there’s a significant hurdle: the ongoing strikes and labor disputes in Hollywood have disrupted production. Actors, writers, and artists are fighting for better pay and protections. VFX unions are forming, and Korean show artists are seeking their fair share. This uncertainty raises questions about what Netflix’s 2024 slate will look like.
This move appears to be Netflix acting as if it is still the dominant player in the streaming market, even though competition has grown significantly. While Netflix has a substantial library of content, the key question is how much of it aligns with viewers’ interests. Additionally, many titles may need to be postponed due to strike-related delays.
In conclusion, Netflix’s decision to eliminate account sharing outside of households was a savvy business move. However, the immediate price increases may not be as well-received. Time will tell if Netflix can justify these price hikes with exceptional content or if they are making moves that no longer align with the evolving streaming landscape.
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