The recent rise in Netflix prices in the United States and Canada has made its users in Spain tremble. Why this constant rise in prices?
Today, Netflix premium fee in Spain reaches 18 euros per month. It is double that of HBO Max and almost triple that of Disney +. Prices went up here a few months ago, but there is concern about whether the rise in the United States will also reach Europe.
It is true that Netflix is the platform with the most content, by far, and the one that releases the most things every week. He always has more than a dozen series on everyone’s lips, while in the rest only 3 or 4 stand out at the same time.
But their rates are much higher than the rest. Why then do they keep going up? How far can they go before their users stand up?
2021 has not been a good year for Netflix, on subscriber issues.
For some months he lost subscribers, although in the last quarter of the year it is estimated that he will announce on Thursday about 8.5 million new subscribers, thanks to the worldwide success of The Squid Game.
Netflix accumulates in 2021 about 222 million users, converted into the most successful platform. But not enough to keep up with his huge spending on content production.
The growth of the company in 2021 has been in foreign countries. In the USA and Canada they barely gained 70,000 subscribers in the third quarter of the year.
There the market is already saturated by the enormous competition from Disney +, HBO Max, Prime Video, Paramount +, Apple TV +, etc.
Establishment in other countries obliges the company to create your own content for them, in many cases with minimum content by law, to obtain transmission permission. And with the great expense involved in dubbing.
This has made spending on content creation has skyrocketed. In 2020, 10,000 million dollars were spent to produce series and movies, and in 2021 it has risen to 17,000 million dollars.
A rise that the Americans are not financing, because the rates there have not risen since 2020. That is the reason that Netflix has given for raising prices:
“We understand that people have more entertainment options than ever and we are committed to providing an even better experience for our members.said a Netflix spokesperson. it’s a statement.
“We are updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always, we offer a range of plans so members can choose a price that fits their budget.“.
It is exactly the same statement that they gave in the rise of 2020.
In short, Netflix raises prices because, Despite the 222 million subscribers, they are not enough to pay the 17,000 million expenses in content. A bubble that many predicted would happen years ago.
Will prices rise again in Spain? It’s hard to tell. Do not forget that Here we pay the same as in the United States, with salaries three times lower. 19 dollars in the USA are not worth the same as 19 euros in Spain.
It seems obvious that Netflix cannot be sustained only with television content. The competition has a lot of exclusive quality content, and users are increasingly alternating subscriptions: 3 months with Netflix, 3 with Disney+, 3 with HBO Max, etc, so as not to miss anything.
And on the other hand, the risk of saturation, that people get tired of watching so many series, is high.
That is why Netflix is experimenting with video games, giving away mobile games:
It will diversify its content more and more, so as not to lose customers: cinema, series, videogames, and who knows if also music, podcast, and other content.
But that also means more spending on new content. How long will Netflix be able to continue raising its rates?