The Netflix Price Increase: A Spin on Consumer Expectations
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The Netflix Price Hike Explained
Kudos to Netflix’s communications team for their creative spin on the rationale behind the upcoming price increase. This morning, subscribers received a straightforward email detailing the adjustment to $15.49 per month starting in April. The subject line promises clarity on the reasoning, clearly aimed at preventing any mass cancellations from subscribers. It’s apparent that a series of corporate meetings led to the carefully crafted message, featuring phrases like "to bring you more entertainment" and "to deliver more value."
The Oversight in Their Message
However, the email notably omits the underlying reasons for this increase. There’s no acknowledgment of the rising costs of television and film production across the board, nor is there any mention of the company's desire to boost profits in response to investor concerns regarding their declining stock value. If Netflix had truly altruistic intentions, they might have highlighted their commitment to paying fair wages to all film industry professionals—from assistants to directors—especially following recent union negotiations and strike threats. As a filmmaker, I find this particularly disheartening. Instead, Netflix implies that their desire to “deliver more” is purely about enhancing user experience, when the reality is more about financial gain.
In light of investor pressure, Netflix has opted not to reconsider executive salaries or cut unnecessary expenditures on questionable content. Instead, they are passing these costs onto consumers during a time when many are already facing financial hardships due to the pandemic, soaring gas prices, and rampant inflation driven by corporate greed. The narrative shouldn’t be about blaming external factors like the President or international conflicts; perhaps brands should consider offering less to shareholders while society recovers from a significant economic crisis.
Implications for Consumers
This price hike from Netflix is likely to set a precedent, prompting other streaming services to follow suit, leading to increased monthly expenses for consumers. While we once eliminated cable subscriptions to save money, we now find ourselves paying more overall due to the fragmentation of streaming services. A quick review of my own expenses revealed a shocking total of $231.94 per month for streaming services alone—far higher than I anticipated for just two people in my household.
The Landscape of Streaming Wars
The ongoing streaming wars benefit those at the helm—companies that leverage digital platforms, rich content libraries, and established brand recognition to bypass traditional cable and cinema. They pay creators less while maximizing profits. Unfortunately, it’s the consumers caught in the middle who bear the burden. Adding insult to injury, Netflix’s recent communication had an insidious undertone. The implication that they are raising prices to provide more value is disingenuous. It shifts the blame onto consumers as if we are the insatiable ones craving more content.
The Consumer's Role in Price Increases
Brands often deflect the responsibility of price hikes onto consumers. Nearly two years ago, I wrote about the likely gaslighting from brands as we emerged from the pandemic. The reception of that piece highlighted a collective fatigue with corporate spin. Today’s consumers are astute and can see through such deceptive narratives. While I wouldn’t classify Netflix’s message as outright gaslighting, it does reflect emotional manipulation. They are raising prices with the justification that they will deliver “stories that uplift” and cater to our emotional needs, all while taking more from our wallets.
In a post-pandemic world, consumers seek transparency and straightforwardness. We deserve recognition for the challenges we’ve faced since 2020, and ignoring that reality is a form of gaslighting.