Netflix might drop prices, but not the way you expected

Longtime Netflix users are now experiencing the service's most recent price hike, which was implemented earlier this year. And those users aren't happy — in their minds, Netflix could save money if it stopped launching and canceling so many new shows. Well, a Netflix price drop may come at some point, but not for the reasons you hope.

At an investor conference on March 8, someone asked Netflix CEO Spencer Neumann if the company would launch an ad-supported streaming plan. Neumann previously dismissed the idea, but now that services like Disney+ are diving into the ad-supported model, the Netflix CEO has changed his tune.

Spencer Neumann now says “it's not like we have a religion against advertising…never say never. While the CEO clarifies that an ad-supported Netflix subscription isn't planned yet, such a plan may come in the future. The only thing stopping Netflix, according to Neumann, is that it already has "a really good, scalable subscription model."

In what is by far the worst marketing communication of all time, @netflix sends an email basically saying that he's doing customers a favor by raising prices. I can't make this shit up. Ridiculous. pic.twitter.com/CZRcPGhg5q

—Dennis Cox (@DennisCoxCT) March 3, 2022

But customers may disagree that Netflix's subscription model is "really nice" or "scalable." The Netflix Standard subscription now costs $15,49 per month, which is a lot of money.

According to an Netflix Email, its recent price increase will "deliver even more value" to customers and help fund "stories that uplift you, move you, or just make your day a little better." But Netflix canceled more than 20 original shows in 2021; society is constantly in search of success, and this search is very expensive. Many customers believe that a more balanced business model would prevent future price increases.

It's unclear what Netflix will do in the future. That said, a price cut seems impossible. If we ever get a cheaper Netflix plan, it will likely be ad-supported, and that will only come if Netflix's "stable" subscription model becomes less efficient for the business.

Source: Variety