![]() and Canada also saw the Premium tier rise by about 67% to 78%. Pricing of the Premium tier in 2022 in Brazil and Mexico was nearly 90% higher versus 2016 pricing while the U.K., the U.S. Pricing changes are for permanent changes and do not include short-term promotional offers or special pricing made available through third-party services.Īs far as the magnitude of price hikes in major markets, the Premium tier has seen the largest percentage increase since 2016 in every market, except for Japan. Please note that pricing changes detailed here are for publicly announced changes and are for the year that pricing changes went into effect, which may differ in some cases from the year a planned pricing change was announced. Focusing price increases in its largest markets is not only the quickest path to boosting profits but also reflects where the company has a sizable market share and is deeply embedded in the viewing habits of consumers, making churn due to higher prices less likely. (29.8% of subscribers), Brazil (7.6%) and the U.K. Netflix's top 10 markets accounted for an estimated 71% of total subscribers as of June, led by the U.S. Price bumps were generally more frequent for Netflix's Standard and Premium tiers, likely due to a reluctance to ratchet up Basic tier plans too quickly for fear of pricing out new subscribers in some markets. ![]() Every major market, except for South Korea, has experienced at least five price increases in the 2016-2022 time frame. Netflix has not been shy about bumping up pricing in its 10 largest markets by subscribers, with the U.S., Canada and Mexico leading the way with 10 or more price hikes across tiers in each market since 2016. and Paramount Global, could borrow from Netflix's pricing strategies as they look to grow average revenues per user across their respective streaming divisions and push toward profitability. * Netflix's rivals on the global stage, including Walt Disney Co., Warner Bros. The introduction of its new Basic with Ads offering in select markets could see Netflix become more willing to charge more for its Basic ad-free service now that it has a less expensive entry-level tier for price-conscious consumers. * Price hikes have generally been more frequent and steeper for Netflix's Standard and Premium tiers as the company has been more hesitant to bump up pricing for the entry-level Basic plan. * Netflix has aggressively raised prices over the years in many of its top markets by total subscribers, especially in markets where it emerged early on as the dominant streaming video subscription service. Global streamers face a variety of challenges - including service affordability, broadband availability and pricing of rival services - that vary widely from market to market and make a one-size-fits-all approach to pricing nearly impossible. With its international expansion largely complete by 2016, Netflix has turned to a wide array of pricing strategies across markets in subsequent years as it looks to balance subscriber growth and profits.
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