Netflix may well see the price of its subscriptions skyrocket in Europe. At least that's what The Motley Fool seems to suggest in an article published on January 13.
Netflix currently has three subscriptions to its catalog. The former is billed at € 7.99 per month and it entitles you to access with standard definition and the ability to download videos on a single device. More interestingly, the second is offered at € 11.99 per month and it gives access to Full HD with no less than two simultaneous accesses and the possibility of downloading videos on two devices.
The third subscription, which is also the most expensive, offers Full HD or 4K, but also 4 simultaneous accesses and the possibility of downloading videos on four different devices. On the other hand, it is trading around € 15.99 per month.
An upcoming increase at Netflix?
Some of you may remember it, but Netflix was offering more attractive prices when it first started out in France. If the basic plan was already offered at this price, the intermediate subscription did not cost more than € 9.99 per month, compared to € 11.99 for the larger plan.
However, in 2017 , Netflix had chosen to revise its prices upwards to finance more projects and, we imagine, achieve more margin.
Since then, the streaming giant has kept the same prices, at least on the old continent. Netflix has indeed revised upwards the price of its subscriptions in the United States last April . And it would seem that it is now up to Europe to check out.
Adam Levy, from The Motley Fool site, thinks that Netflix may review its prices this year in Europe. An approach that would follow the increase implemented in the United States and Canada, but also in the United Kingdom.
€ 1 per month to finance more content?
To support his point, our colleague is based in particular on the content in preparation at Netflix. In order to keep control of the market, a market which is becoming more and more competitive, the giant has indeed increased investments in recent months and it should at the same time produce much more content in Europe in the months to come.
However, who says more content also means much more spending. To make this investment profitable, it would therefore be logical for Netflix to once again review its price list. Even more in view of the current context.
Adam Levy cites a new measure on which the European Union is working, a measure which will aim to require that video streaming services include a minimum of 30% of European works in their catalog. If the project is successful, Netflix will therefore have to step up its investments and buy more content in Europe. This will inevitably result in an increase in its costs.
No confirmation from Netflix
An increase which should however remain measured. Netflix is indeed very well established in Europe and a simple increase of 1 euro per month on its largest packages would allow it to obtain more than half a billion dollars.
Still, for the moment, the main interested party has not yet confirmed anything.