Netflix Raising Prices Again Remind Us Why We Hated Cable TV In The First Place

Here’s a familiar phrase: “Netflix is raising prices.” For those keeping score, it is six times since 2014 that “Big Red” has decided their original content was underpriced.

Starting this week, the premium Netflix package will be $22.99. Yes, really. The one-stream basic plan will rise to $11.99 (US). All other plans, including its entry-level, $6.99, ad-supported tier, will stay without price gouging…eh, balancing their checkbook.

It begs the question, “What in the hell is going on?” Streaming hit all-time high subscriptions during the pandemic as the world shut down. So, is Netflix losing money now that COVID protocols have lifted?

Well, the top streamer made $8.5 billion — last quarter! So, there’s that.

The company reported a 9% year-over-year increase in average paid memberships, adding 8.8 million subscribers last quarter. That’s compared to 2.4 million in the third quarter last year. Overall, Netflix reported 247 million paid global subscribers in the third quarter.

CNNBusiness.com

Netflix invests literal billions of dollars into its wide array of original content. Subscribers didn’t ask for that, but they are getting stuck with the bill. But how long can they afford to keep doing that to customers?

Netflix Streaming and Spiking, Like the Rest of Them

There was a time when Netflix was the must-have streamer, and everything else was the nice-to-have category. Since the apex of Netflix’s dominance among streamers, Disney+ found its stride by buying everything out there.

Hulu and Prime (Amazon) have created award-winning original content. And while AppleTV+ hasn’t quite figured out its signature, shows like Ted Lasso, The Morning Show, and Severance are lining their coffers in grand fashion.

Remember the good ol’ days when AppleTV+ was a paltry $4.99 monthly, and Disney+ was only $2 more? What about when HBO wasn’t MAX and didn’t charge like it? A recent study from Convergence Research Group noted the “average subscription cost” across all streamers increased by 10% in 2022 and 10% this year. Meanwhile, every other app follows suit to keep up with the Joneses.

Today, prices are going up across all apps, including Netflix. Disney takes the cake with a 27% price surge, followed by Hulu’s 20% spike. No one is safe. As long as schmucks like us keep paying for them, those arrows continue to stretch. And get this:

The Financial Times writes that as of fall, the $87 per month price to subscribe to the top US streaming services is $14 more than it was one year earlier ($73).

For the first time in TV history, cord-cutters do not have the advantage. The average collection of premium services adds up to $87, and the average cable TV package is $83 per month. Apps create a “buffet table” sensation for your streaming pleasure. Much like those “buy now, pay later” services, you lose track of those streaming apps and end up paying close to $150 to $200 each month if you’re not careful.

The point is this: The differentiation of cutting the cord from cable is no longer viable. It’s time to sacrifice one app for the other. What matters to you most? Is it unlimited DVR for YouTubeTV and day-after streaming across network channels on Hulu? Do you prefer Universal movies (Peacock) over original content (Netflix)? Is the Star Wars franchise (Disney+) more important to you than Star Trek (Paramount+)?

It’s time to choose because now that we’re back up to cable prices, what’s the use of cutting? Prices are going up everywhere. What’s next in the overcharge wars? Paying for the right to use tweets? Oh wait…