Netflix’s price increase will not stop for the time being.

Every time Ben Affleck falls in love with a class A -class celebrity, the company always offers the same reason whenever Netflix raises the price. As you know, additional funds are required to continue investing in the types of programming and products required by 32 million subscribers. This is why Netflix’s standard monthly price, including the $ 2.50 increase announced in the company’s recent revenue report, has risen from $ 7.99 to $ 17.99 over the past 13 years. Of course, there is still a $ 7.99 plan per month, but it contains advertisements and is $ 1 more than a week ago.

But let’s be honest with each other. Do you want to know why Netflix continues to raise prices? Because it can. Netflix won. The rest of the streaming industry is fiercely competing for finite funds, dealing with transportation disputes caused by the decrease in the number of subscribers, and embarrassing the future of the TV. Netflix Be The future of TV.

In particular, in the last few years, Netflix has been transformed into a part of the mainstream culture that is virtually inevitable and virtually inevitable in solid streaming services. We have developed a number of hits. Strangers, wednesday, Squid game, Night agent If we are really generous, we offer at least the HBO style promise TV. It has been proven to be able to produce some cultural events in nothing through events such as Paul/Tyson fights and Tom Brady Lost. We successfully completed the NFL game of the day without any problems and spent billions of dollars to buy WWE. Monday night lifeOne of the biggest hits of the cable appeared on the platform. Under it, there is a large library consisting of other filler TVs that occupy most of the reality show, cooking competition, and TV viewership.

Now you can watch expensive movies, high -end TV programs, sports, and low -budget reality programs with Netflix subscription prices. I don’t want everything, but I pay for it anyway. Dear friends, I call it a bundle of cable. And it is still the best business that the entertainment world has come up with.

The average price of the default cable subscription in 2006, before Netflix started content streaming on the Internet, was $ 40-50. People watched TV for about four hours a day, which probably meant that I watched about an hour of advertisement every day. Currently, services such as YouTube TV, Comcast’s new sports and news bundles are more than $ 70 and only offer live programs. Meanwhile, Netflix subscribers watch the service for two hours every day in all categories and pay only one tenth of the fee. Many of them do not see advertising at all. Think about saving!

Netflix definitely sees it. Netflix’s co -CEO Greg Peters said in this week’s earnings announcement that he is optimistic about Netflix’s “long -term profit generation opportunities.” “We are now creating only 6%of profit opportunities in the countries and sectors we provide,” he said. “And we believe that as long as we continue to improve the diversity and quality of TV and movies and gradually expand the scope of the provision with new content types, we will be able to gradually increase its market share every year.”

Translation: Netflix is ​​approaching the entire entertainment diet. And your entire entertainment budget.

PETERS says Netflix considers signals such as participation, maintenance, and acquisition, considering the price hike. All of this results in one simple question. Do you continue to use Netflix even if the price rises? So far, the answer has always been always ‘yes’. So the price continues to rise. It’s really simple. It is clear that Netflix can claim more. Perhaps you can pay much more and rarely leave. So of course it will go beyond the limits.

Another way to understand the details of the price strategy is that Netflix likes the ad support plan. The company repeatedly said that it can make more money by combining less monthly fee and advertisement than gaining higher subscription fees. Many of the new subscribers (about 55%of the recent quarter) select advertisements, and Netflix has begun testing the amount that existing subscribers will pay to maintain Netflix without advertising. It is not a coincidence that the price without advertising is 2.5 times higher than the basic price. And remember: even if we all switch to advertising plans, the price can still rise. Cable TV is expensive and After all, it’s full of advertising and Netflix definitely likes the business model.

Netflix continues to signal that its ambitions are growing. TED Sarandos, another co -CEO of the company, says the company is more open to live sports than ever since the success of Christmas NFL games and Paul/Tyson fights this week. The company is also entering the video game, which occupies another big part of the entertainment budget of more and more people. Netflix borrowed tactics of YouTube and Tiktok Ms. Rachel began to attract creators such as the platform.

Lead Hastings, a co -founder and former CEO of Netflix, is famous for saying that Netflix’s main competitors are sleep. In fair speaking, sleep is still a very powerful market force. And youtube continues to have a stronger influence in the video viewing environment of people. But Netflix is ​​actually superior to all other companies. Even on the outside, even if it is a competitor, it is now giving Netflix a program license because it is now a place where viewers and culture are located.

The streaming war was confused and not over yet, but Netflix has already won. The only question left is how rich the loot of victory is. And it’s a good idea to believe that Netflix will find out.