Netflix will readjust the values of its monthly subscriptions starting this Thursday (22). The streaming service confirmed the increase in all its traditional plans (basic, standard and premium) to TV news. The last change had taken place in 2019.
In an official note sent to the report, the platform justified the increase on the grounds that it will improve the experience of its subscribers. In the second half of this year, Netflix has as forecast the releases of several titles awaited by its audience, such as the last batch of episodes of La Casa de Papel, A Barraca do Beijo 3 and the second season of The Witcher.
Check out how the new prices are with the adjustments:
- Basic plan (1 screen): from R$21.90 to R$25.90;
- Standard plan (2 screens, Full HD video quality): from R$32.90 to R$39.90;
- Premium Plan (4 screens, video quality in Ultra HD, HDR, Dolby Atmos): from R$45.90 to R$55.90.
The platform informed that the updated values will reach old and new subscribers. For those who are already consumers of the service, the company said it will notify them of the increase in the next 30 days. The exact date of communication will depend on each subscriber’s billing cycle.
We believe people have more choices than ever before, and we’re committed to delivering an even better experience for our subscribers. As of July 22, we will readjust our prices, which have remained the same since 2019. With this, we will continue to offer the best content, between movies and series, in addition to a wide variety of genres.
For Guilherme Zanin, strategist economist at Avenue Securities, Netflix’s monthly fee increase was unexpected, mainly because it comes at a time when the Covid-19 pandemic continues to rise in Brazil.
According to Zanin, the biggest problem facing the service today is the drop in the number of subscribers in the United States, despite strong growth in Latin America and Asia. In this second quarter of 2021 alone, Netflix lost 430,000 US customers between April and June.
“The big problem is that the average amount per person is much lower on the Asian and Latin American continents. For Brazilians, Chileans or Indians, these costs are higher compared to traditional Americans in their income. There, they face competition greater, whether in local brands or the rise of services such as Disney+ and HBO Max,” explained the professional.
Zanin said the financial market sees Netflix’s move as unexpected and that the increase could be postponed to the end of this year or early 2022. The strategy could be a shot in the foot given competition elsewhere.
“[Nos EUA] the average value is $14 [R$ 72,80] per person, while in Asia and Latin America it is less than US$ 10 [R$ 52]. They are trying to equalize, but that will definitely hurt the competition. The other platforms come with lower costs, and the Brazilian cannot absorb them like the common American. For them [nos Estados Unidos], it’s less costly to sign them all together,” he added.
Currently, Netflix has 209 million subscribers worldwide. This quarter, the increase was 1.5 million customers, 500 thousand more than expected by the company. The result was driven by growth in Asia and the Pacific region, where the base grew by 1.02 million, and by Latin America, which had 760 thousand more customers.