Netflix Announces A New Price Hike
Issue #137 — An arm-twisting maneuver of increasing the price points for its no-ad plans is Netflix's aggressive strategy of forcing its subscribers to its ad-tier plans.
Netflix Announces A New Price Hike
Investors were happy with Netflix's most recent earnings report as the streaming company posted an impressive third-quarter showing, adding 8.8 million subscribers and increasing its revenue for the quarter to $8.54 billion.
Who will not be happy with Netflix’s most recent results? Subscribers, as they will bear the brunt of another price increase. The last time it had a price increase was in January 2022, so the duration from the previous increase to this one has been less than two years.
U.S. subscribers who pay for the no-ad tiers will see increases of two dollars for Netflix’s Basic package, going from $9.99 to $11.99, and three dollars for its Premium plan, jumping above twenty dollars to $22.99 from $19.99.
Netflix’s most recent price increase will also affect subscribers in the U.K. and France.
This price increase does not affect Netflix’s ad tier and Standard plans, which will remain at $6.99 and $15.49, respectively.
The streamer feels confident about its operations, also boosted by the crackdown sharing, and believes most subscribers will adapt to the new pricing structure rather than completely drop the service.
For those who feel the new structure is too pricey, the ad-tiers' stability should be appealing enough to keep them subscribed to the service, which might be Netflix’s overall plan.
Netflix is looking to boost the number of people subscribed to its ad-tiers plan, which has not grown as fast as the company hoped.
“Adoption of our ads plan continues to grow — with ads plan membership up almost 70% quarter-over-quarter — and 30% of sign-ups in our ads countries are, on average, to our ads plan, with more work to do to scale this business. Our $6.99 per month ads plan in the U.S. continues to support our ads plan growth,” the company said in a statement.
It’s easy to see why Netflix wants to aggressively pursue its ad-tier options — the allure of two income sources.
Netflix’s early success was a result of the fact that its content came ad-free. Steering customers to its ad-tier version with the arm-twisting maneuver of price increases is definitely not a welcomed approach.
To preserve some of that ad-free experience within its ad tier plans, the streamer will introduce a binge-ad product that will give viewers an ad-free episode of a series, with a “brought to you by” message after watching a few episodes.
(CNBC, CNN, Broadcasting+Cable)
RECAP
NBC News Hosting Third GOP Presidential Primary Debate Dilemma
Should a reputable news organization continue to work with the Republican National Committee when it comes to presidential debates? That issue was brought up by CNN's Oliver Darcy, who, upon learning that NBC News would be the host of the third Republican presidential primary debate, which will be on Wednesday, November 8 at 8 p.m. E.T. Darcy, in his Reliable Sources newsletter, questioned NBC News’ decision after the GOP announced that Salem Radio Network and Rumble would be part of the debate as media partners, saying, “Most conservative media outlets are not what they were pre-2016. Just like the Republican Party, they have been remade in Trump's image, embracing conspiratorial thinking and bathing in rhetoric often detached from reality.” By working with these media outlets, Darcy poses the question of whether NBC News is helping to legitimize these organizations that “are in the business of mainlining extremism to the American public” by participating in a debate with them? NBC News is not alone in this; Darcy’s own CNN also made a pitch to the RNC, which had them also working with Salem Radio Network and Rumble. (TVNewser, CNN Reliable Sources, The Spectator)
ESPN’s Financials Released For The First Time
There is an adage that “curiosity killed the cat,” but we have an instance where that curiosity has been rewarded, as Disney, for the first time, revealed ESPN's financial situation. The financials, which were released separately from Disney’s, showed that the network made a profit of $2.9 billion and brought in more than $16 billion during the 2022 fiscal year, which ended on October 1, 2022. The financials reveal how ESPN largely depends on the money it receives from pay-TV distributors, affiliate fees, and $10.7 billion vs. 4.4 billion from advertising. ESPN’s numbers show why it’s valuable to Disney as its entertainment business, which includes linear T.V. networks, T.V. and movie studios, and streaming, made a profit of $2.1 billion but had revenue of $39.6 billion. As healthy as ESPN's financials are, trouble is brewing as it will continue to be heavily impacted by the effects of cord-cutting and the high cost of acquiring media rights. This explains why Disney is looking for strategic partners for the sports network. (Axios)
Showtime Shuts Down Its Sports Division
There was a time when boxing and Showtime went hand in hand, as the network used to showcase top-tier bouts featuring legends such as Mike Tyson, Evander Holyfield, and Manny Pacquiao. Those days are no more as Showtime announced this past Tuesday that it would be shuttering its sports division, Showtime Sports, which has been around for 38 years, at the end of the year. Paramount Global's president/CEO Chris McCarthy, in a statement to employees, “As we continue to dedicate a larger percentage of our resources toward premium scripted series that drive subscribers for us in both Pay T.V. and SVOD, Showtime will not be moving forward with boxing or other content produced by the Showtime Sports and Event Program Team. Showtime Sports’ closure is another blow for boxing, which continues to lose linear media partners as it lost HBO nearly five years ago, and also signals the end of MMA being shown on the network. Unfortunately, the end of Showtime Sports also means the end of sports documentaries and digital programming units and the loss of jobs. (The Athletic, Yahoo! Sports)
QUICK RECAP
Anniversary: Maria Bartiromo celebrates 30 years in the T.V. news business. (Talking Biz News)
Award: CNN and NBC News are recipients of the 2023 RTCA Awards. (Radio and Television Correspondents’ Association)
Profile: CBS’ Nate Burelson talks about what is his primary motivation. (Essence)
Media Business: Former Fox News host Tucker Carlson’s media company secures initial investment. (The Wall Street Journal)
Streaming: AppleTVPlus abruptly ends The Problem with Jon Stewart. (The Verge)
Streaming: Could WBD's David Zalzav’s streaming strategy be working? (Fast Company)
Out: Bloomberg News lays off 20 editorial staffers. (Talking Biz News)
Out: Kirsty Walk announces her departure from BBC News’ NewsNight. (BBCNewsNight/X)
Out: Chris LaPlaca will retire as ESPN's communications chief after 37 years. (Chris LaPlaca/X)
In: Tinishe Agramonte named Chief Diversity Officer of Disney. (Broadcasting+Cable)
In: Elita Fielder Adjei has been named vice president of communications for CBS Stations. (Paramount Press Express)
In: Former Syracuse coach Jim Boeheim is set to join ESPN for the 2023-24 college basketball season. (College Hoops Today)
Ratings: NBCUniversal News Group is the no. 1 digital group in the U.S. for the third quarter. (NBC News Public Relations)
Ratings: Week 6 NFL ratings. (Sports Media Watch)
Ratings: CBS News’ 60 Minutes is the no.1 non-sports primetime program for the 5th straight week. (TVNewser)
Programming: CNBC is launching a new show next month called Market Movers. (Talking Biz News)
Programming: CNN's Abby Philip and Laura Coates shows made their primetime debut. (Los Angeles Times)
Programming: ABC News’ Good Morning America to move from Times Square studios. (Deadline)
Sports: The Premier League is already considering its next media rights sale. (Front Office Sports)
Israel-Hamas War: CNN's Sara Sidner gets a protestor up in her face. (TVNewser)
Israel-Hamas War: NBC News correspondent reveals his wife’s family members were held hostage. (TVNewser)
Israel-Hamas War: BBC News accused by Israel of “modern blood libel.” (The Guardian)
Israel-Hamas War: News networks accused of suppressing pro-Palestinian voices on their air. (JewishCurrents)
Israel-Hamas War: How a CNN journalist and his family escaped Gaza City. (CNN)
Israel-Hamas War: BBC News admits it misled its report on UK-based pro-Palestinian demonstrations. (LowkeyOnline/X)
Israel-Hamas War: ABC News and MSNBC switch titles for their war coverage. (NewscastStudio)
Sports: Netflix tees up its first live sports event, a golf event. (Front Office Sports)
Sports: What is ESPN's plan for a strategic partner and DTC plans? (Awful Announcing)
Sports: Media rights deals are becoming tighter. (Sports Business Journal)
Sports: NBC Sports signs a media rights deal with Boxxer to air fights on Peacock and NBC. (NBC Sports Group Press Box)
Sports: ESPN's Dan Orlovsky is gunning for the top NFL color analyst top job. (Awful Announcing)
Sports: Are ESPN's Adrian Wojnarowski and Shams Charania's reporting practices correct? (New York Magazine)
Sports: A new era of local sports media rights begins. (Front Office Sports)
Sports: Spanish broadcasters call the game from the press box during the Monday Night Football game between the Dallas Cowboys vs. Los Angeles Chargers. (Awful Announcing)
Sports: According to NBCUniversal, ad sales for the 2024 Paris Olympics are moving ahead of prior games. (The Hollywood Reporter)
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A MarkHenry Media LLC publication - Issue #137 - 2023