In recent years, the cost of streaming services has continued to rise, with Netflix being no exception. Co-CEO Greg Peters recently addressed the company's decision to raise prices in an interview with The Verge. He explained that the multiple price increases for its ad-free plans were aimed at providing consumers with a wider range of options and added value, which required additional investment.
Peters stated that Netflix's goal is to offer a higher diversity and quality of shows to its viewers, and that occasional price hikes are necessary to maintain this standard. Last year, Netflix discontinued its Basic plan, leaving subscribers to choose between the more expensive Standard ad-free plan or the more affordable Standard with Ads plan. The Premium ad-free plan also saw a price increase.
While Netflix is not seeking to push viewers towards its ad-supported plan, Peters mentioned that the company intends to decrease the ad load over time to provide higher-relevance and higher-value ads. The focus remains on adding value to the entertainment service offered by Netflix.
Despite the price increases, Netflix has seen success in attracting new subscribers and generating revenue. In the first quarter of this year, the streaming giant exceeded expectations by gaining 9.33 million subscribers worldwide and earning $9.37 billion in revenue.
Overall, Netflix's strategy of offering a variety of pricing tiers and plans to cater to different consumer preferences seems to be paying off. The company's focus on providing quality content and adding value to its services has resulted in continued growth and success in the competitive streaming market.