Eventually this kind of approach would torpedo their company's growth. Every price hike alienates part of their base who, for whatever reason, cannot or will not accept the new higher price and they will jump to another provider who is the same or cheaper in price even if the product they receive is worse.
At some point the price difference between the quality product and the cheap product becomes so vast that the quality product company must shrink either by reducing the quality of the product, or by reducing the manpower necessary to produce the quality product.
It's better to first introduce ads into the current subscription plan, and then introduce ad-free subscription levels at a higher price.
> It's better to first introduce ads into the current subscription plan, and then introduce ad-free subscription levels at a higher price.
The moment you introduce ads to your service you invite a disease that will rot your service to the core.
The next step after ad-free subscription levels at a higher price is... ad-full subscription, because why leave money on the table, when you can get people to subscribe and then show them ads anyway (maybe different ads, maybe less of them, but still).
Do ad-free subscriptions a higher price work, we don't see many of those offers.
I suspect the problem is although everybody sees the ads the value comes from the wealthiest section of subscribers. These are the people most likely to pay to block the adverts. Lose those and you will lose your advertisers.
Netflix per dollar is about the cheapest entertainment you can get. Frankly it should be MORE expensive for the amount of high quality content they release constantly.
The three subscriptions available here in Denmark are:
SD: $11.46, HD: $14.37, UHD: $18.72 (UHD is a bit of a joke with that birate, but that is another matter).
For low income households that can be quite a lot. Combine that with Netflix having significantly less content in Denmark than the rest of the world, and it might not be such a good deal the begin with after all.
So I guess it depends on where you live and your financial situation.
I suspect most low income households in Denmark are going to be able to afford that, just because it can displace other much more expensive forms of entertainment.
>Frankly it should be MORE expensive for the amount of high quality content they release constantly.
I canceled it because it was obvious their content is stretched out for no reason other than to waste my time. Also it’s full of product placement which takes me out of the story.
While it is indeed cheap, that doesn’t mean everyone can afford it.
I won’t be surprised if they have more price tiers for different quality, or if the price tiers that already exist get wider. Kinda like the way the UK TV licence comes in normal and black & white.
It is certainly more expensive than Disney+ and the content why high in quantity on Netflix isn't necessarily high in quality across the board. Note, I am using 4k on all my streaming services.