Netflix reached new heights and increased prices
Netflix increased its paid quarterly subscriber base by a record of nearly 19 million in Q4, bringing its global total to 302 million. Not surprisingly, this resulted in another price increase across the board for all tiers. The ad-tier increased $1/month to $7.99/month, the standard tier $2.50/month to $17.99/month and the premium tier $2 a month to $24.99/month. The cost of adding an extra member increased $1 to $8.99/month. The record subscriber growth was in part due to the launch of live programming with the Jake Paul vs. Mike Tyson fight and the NFL games streamed on Christmas Day.
Netflix also announced plans to incorporate gaming and interactivity into its platform, where family and friends can play together. Currently, Netflix offers games included with all subscriptions such as Squid Game Unleashed and Grand Theft Auto.
The Circana Take:
- The move into live sports programming brought a new audience to Netflix, a service that is looking more and more like traditional broadcast and cable TV. This strategic play complements the migration into advertising and will have a positive synergistic impact.
Bundles, bundles, and more bundles
Max and Starz are teaming up to form a new streaming bundle launching on Prime Video costing $20.99/month, while Vizio is launching a package of Starz and AMC+ priced at $13.99/month. Both bundles are about $7 less than signing up to each one individually. Max and Starz are no strangers to bundling as Max, Disney+ and Hulu are currently available as a bundle, while Starz is bundled with Netflix for FIOS customers.
The Circana Take:
- Teaming up with Prime increases visibility and reach for Max and Starz, while giving Prime another offering. For Vizio, who’s presence is in the FAST arena, this expansion to the subscription space gives them opportunity for growth.