Netflix: a new increase in subscription prices is imminent, according to experts

Twelve short months later the latest increase in its prices to dateNetflix subscribers could checkout again. Indeed, on the eve of the announcement of its third quarter (or Q3) results, the Netflix streaming platform is preparing to increase the price of its subscriptions according to experts, and an article from our colleagues at Variety.

Netflix and its “ARM”

Netflix's third quarter financial results will be announced this Thursday, October 17 at 10 p.m., but the rumors are already going well. And if, after a Q2 which saw the streaming giant gain 8 million subscribersthe figures once again promise to be solid, this would not prevent the streaming service from reviewing its price list.

The reason? The average revenue per subscriber, or ARM (“average income per member” in English), which has been stagnating for a year in particular due to the multiplicity of international offers, and variations in currency rates between countries. In any case, Netflix would urgently like to act on this highly important average income, and this would involve an increase in prices.

The last increase in prices dates from October 2023. It focused on the Premium offer which then took two additional euros, going from €17.99 to €19.99 per month, in order to better differentiate it from the Standard offer at €13.49. The Standard subscription with advertising was the same price.

Even if we will wait for an official statement from Netflix by the end of the week, the potential next increase should therefore impact the two Standard offers, to precisely increase this famous ARM so dear to the streaming platform.

Last year, a study carried out by Civic Science revealed that 39% of users would cancel their subscription if a price increase took place. If it is confirmed, this will perhaps be one too many for many subscribers.