Netflix had another price increase in October. The streaming service announced (in its third-quarter earnings report) that the Basic plan will now be $11.99. And the Premium plan will be $22.99.
The streaming service last increased its prices in January 2022. They also stopped new and returning users from getting the $9.99 ad-free Basic plan in July. This means everyone has to pay more, even if they just want to avoid ads.
But now, Netflix’s recent announcement after an increase in its subscription prices is getting an overwhelmingly negative response from its subscribers. This indicates widespread dissatisfaction.
Netflix’s Latest Announcement After Price Hike
Scott Stuber, the head of Netflix’s film division, said his mandate was clear: quantity, not quality. He said to Variety:
“We were growing a new studio. We’d only been doing this for a few years, and we were up against 100-year-old companies. So you have to ask yourself, ‘What is your business model?’ And for a while it was just making sure that we had enough. We needed volume.”
So, now Netflix is changing its strategy. Instead of making about 50 films every year, they now want to support around 25 to 30. This new approach has led to one of their best fall film lineups in a while. They’ve got a mix of comedies, thrillers, and sci-fi, plus some potential Oscar-worthy movies from big names like Bradley Cooper and the Obamas. As Stuber added, “They are not “trying to hit a set number of film releases.”
When Stuber took charge of Netflix’s film operations, he had to act fast. He had to come up with a plan to rival traditional studios that had extensive movie libraries they could repackage along with well-established franchises.
This led the company to get creative. For instance, this winter, they’re launching Rebel Moon, a two-part, PG-13-rated galactic adventure with a $166 million budget. Its aim is to rival the popularity of Star Wars. Later on, in late 2024, they plan to release R-rated extended versions of both films.
Fans Backlash Over Netflix’s Latest Announcement
Scott Stuber expresses his excitement (via Variety), saying he’s “excited about the next wave of things.” He adds, “Many of these projects show that we can be a space for big, broad pieces of entertainment.”
But looks like this decision of Netflix doesn’t excite fans or its subscribers. As one X user (@magic132906) comments on a post by Culture Crave, “Nice! Just like the food industry the new business plan is a more expensive price for less of a worse product. Eventually it will start putting them under.”
Another commented, “Increase price, decrease quality and products, remove access from families. The downfall will be immaculate.”
Netflix plans to make fewer films going forward
Instead of making around 50 films a year, they're going to make 25-30
(via @Variety) pic.twitter.com/KHC3K88Jyn
— Culture Crave 🍿 (@CultureCrave) November 7, 2023
Stuber said that they’re “a machine that was built to go, go, go,” that doesn’t always result in quality. He also emphasized the fact that a lot of streaming companies made the mistake of moving so fast by making things that weren’t ready to be produced. So he just “wants to avoid that.”
But now, after the overwhelmingly negative responses from subscribers, it would be interesting to see how much this approach will benefit Netflix in the long run.
