With the new year comes the likelihood of a price hike from streaming giant Netflix. The company has hinted at increased subscription fees in the future, according to its recent quarterly earnings report.
Netflix’s communication to its shareholders indicated a commitment to enhancing the platform, with occasional price adjustments to reflect the quality of its service. These increases support further investment and growth of Netflix’s offerings.
Even though the company had previously mentioned that prices would remain stable until the middle of 2024, Netflix’s recent growth might pave the way for an earlier increase. At the close of 2023, Netflix experienced impressive growth in the US and Canada, adding nearly three million subscribers, now boasting over 260 million subscribers globally.
Netflix’s $5 Billion Investment into WWE’s Monday Night Raw
Netflix recently struck a deal with WWE to broadcast Monday Night Raw on its platform. Estimated at a staggering $5 billion over the span of ten years, this agreement equates to around $500 million annually for the wrestling program. As content costs mount, it is typically the subscribers who shoulder the financial burden.
The collaboration hints at an imminent rise in subscription prices. Netflix is known for heavily investing in original content but also for the premature cancellation of many series. Its partnership with WWE, however, is set to expand its repertoire substantially, offering all Premium Live Events internationally—such as the Royal Rumble and Wrestlemania—and a comprehensive library of WWE content. In the United States, WWE’s offerings will remain exclusive to Peacock until March 2026, with a few exceptions in countries where WWE has existing contracts with other platforms, such as Sony in India.
This move is advantageous for both entities. WWE can potentially reach a broader audience as the migration to a streaming platform like Netflix aligns with growing trends in cord-cutting. Meanwhile, for Netflix, this step signifies an initial foray into live sports broadcasting, an area it has shown interest in but has missed out on NBA rights and NFL Sunday Ticket.
Netflix to Discontinue the ‘Basic’ Plan
In additional news, Netflix is set to discontinue its “Basic” subscription tier, which is currently priced at $11.99 per month and functions as an ad-free version of the “Basic with Ads” plan. This change reduces the number of available plans to three, with the “Basic with Ads” plan at $6.99 monthly, the “Standard” plan at $15.49, and the “Premium” plan at $22.99.
As a precursor to this change, Netflix ceased new subscriptions to the Basic plan in Canada last year, hinting at the future direction of its subscription model.
The phase-out will initially affect new and returning members, while current subscribers on the Basic plan are expected to retain their current service for the time being. It is significant to note that approximately 40% of all new Netflix subscriptions are for the ad-supported plan.
