Netflix has become a streaming giant through relentless price hikes. Over 13 years, its standard monthly price jumped from $7.99 to $17.99, with plans still offering an ad-free experience for $7.99. The company’s ad-supported tier is now priced at $8.99, reflecting the shift in consumer demands.
Despite competition from traditional cable bundles and streaming rivals struggling, Netflix remains the only major service not offering a subscription-based deal for content like movies or shows. Its ability to raise prices stems from its loyal customer base and demand for premium content. Other services face challenges due to shrinking subscriber numbers, carriage disputes, and uncertainty about their future in the broadcast industry.
Netflix’s dominance is evident in its growing library of high-quality programming, including original series and sports events. By offering a variety of expensive and exclusive content at a lower cost than cable bundles, it captures a significant portion of the market while maintaining profitability.
The average price for basic cable subscriptions in 2006 was between $40 and $50—a stark contrast to Netflix’s premium model, which has revolutionized the streaming landscape.
Source: https://www.theverge.com/2025/1/26/24351302/netflix-price-increase-streaming-wars