These are busy times on Netflix, with a sea of background that significantly affects the platform’s subscribers. After years of absolute leadership and what appeared to be a walk in the clouds, the financial results presented by the company early last year were a pitcher of cold water, with the main consequence being that the company began to reconsider its numbers, more specifically those affecting its relationship to regulate the subscribers, ie its tariffs and restrictions.
It seemed like a risky move Raise the tariffs exactly when the lowest tariffs occur, and besides, all your competitors’ prices are more competitive than yours, but still, as a first front, they decided to start monetizing the joint accounts. It’s actually true that the terms Netflix has set in this regard have always been the same, one home, one subscription, but it would be cynical to deny that a good chunk of its growth over the past few years has come from extreme neglect on the part of the company at this point.
The company began its testing in this regard about a year ago in Chile, Costa Rica and Peru, later expanding it to the Dominican Republic, Argentina, Honduras, Guatemala and El Salvador and just over a week ago in a move it had already gone far had progressed, the hack on joint accounts reached Spain, among others. The additional price for each non-cohabiting profile is 5.99 euros and here we explain how to choose the main location and add an “external” profile.
So far we have had many doubts about how the co-payment model has fitted in Latin America and of course how this will be transferred to other markets, mainly ours. There are some very interesting predictions in this regard, like the one you can see in the image below, but it’s too early to tell. Of course, considering that the Latin American experience must have been a good lesson for the company, there is every indication that the numbers are wrong.
So much so that if we look at prices now, we’ll see that there’s been a very noticeable movement since then Netflix has significantly reduced monthly fees in many Latin American countries. The percentages of the price drop are not the same, but in all cases they are remarkable. This is how the Netflix tariffs were in these countries after this adjustment:
Bolivia, Cuba, Nicaragua, Paraguay and Venezuela
- Basic Plan: $3.99 (was $7.99)
- Standard Plan: $5.99 (was $10.99)
- Premium Plan: $7.99 (was $13.99)
Panama
- Basic Plan: $4.99 (was $8.99)
- Standard Plan: $8.99 (was $12.99)
- Premium Plan: $12.99 (was $15.99)
Ecuador, El Salvador, Guatemala, Honduras and the Dominican Republic
- Basic Plan: $4.99 (was $7.99)
- Standard Plan: $7.99 (was $10.99)
- Premium Plan: $10.99 (was $13.99)
As you can see, some subscriptions are down as much as 50%, with losses ranging from $3 to $6.
How should we interpret that? Well, I understand that in exactly the tonality I indicated at the outset, which is in the context of more competition than ever and cheaper to boot. And although at the moment this price drop is only for Latin America, we already saw last year that this is the market that the company chose to conduct this type of testing, so it makes a lot of sense to expect that at some point, Let’s see similar movements in the rest of the world and especially in those countries where the hack of shared subscriptions may already incur significant costs in subscriber volume.