Users React to Netflix’s Plan to Raise Ad-Free Subscription Prices

Netflix's Plan

According to rumors, Netflix will increase the price of its Ad-Free Subscription. When the Hollywood actor’s strike ends, the streaming giant is expected to raise its prices for the first time since January 2022.

It is expected that the United States and Canada will feel the brunt of the price increase at first, as has been the case with previous price hikes, according to What Hi-Fi, in July Netflix CFO Spence Neumann assured investors that the company would not implement price increases in major markets like the US for at least a year.

Consistent price increases in the streaming industry have put pressure on consumers who are struggling to afford the rising costs of various streaming services. In the jargon, this is called “streamflation.” Netflix, Disney+, Discovery+, Apple TV+, and Amazon Prime (including Prime Video) have all raised their monthly subscription prices in the past 18 months.

Also, competitors to Netflix, such as Disney+, are looking to find novel ways to monetize their services, such as by introducing ad-supported tiers and prohibiting password sharing.

Users’ Reaction on Upcoming Netflix Subscription Price Increase

There are worries about how the impending Netflix price increase will affect the platform’s millions of users. According to recent research by CivicScience, 29% of current or potential Netflix customers would start or continue membership if they could choose an ad-free plan, such as Netflix Standard or Premium. However, if membership prices were to increase, 39% of respondents said they would cancel their subscriptions.

Netflix's Plan to Raise Ad-Free Subscription Prices

According to the numbers, customers who are willing to pay $15.49 per month for commercial-free content are likely to remain subscribers even if the price increases. Only a minority would pay the extra $6.99 per month for Netflix’s Standard plan with advertisements, while well over a third are seriously considering doing away with the service altogether.

Regular Netflix viewers are predicted to feel the pinch of a price increase the most. It is anticipated that if there is a price increase, a large number of these consumers will cancel their ad-free subscriptions. In particular, monthly subscribers are predicted to switch to the ad-based plan and consider canceling.

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Consumers Feel the Impact of ‘Streamflation’

Customers’ wallets and self-esteem have taken a hit from stagflation, leading them to use streaming services less frequently. CivicScience reports that 33% of American consumers have already reduced or plan to reduce their spending on streaming subscriptions, up from 28% in January. It has also been a trend this year that the percentage of people who have four or more streaming subscriptions has been falling month over month.

As Hollywood resumes operations following the Writers Guild of America (WGA) strike, Netflix is planning to raise its subscription prices. The Writers Guild of America has ended its strike and begun voting on a new contract with major Hollywood studios, including Netflix.

The new agreement reportedly grants the WGA access to streaming data from streaming providers, allowing writers to gauge the success of their work. The agreement guarantees a minimum wage increase of 18% for high-budget films and a minimum residual of 26% for writers of streaming features. According to the WGA’s estimates, the new agreement will cost Netflix less than 0.2 percent of its annual revenue.

How This Affects Subscribers

Netflix’s decision to raise ad-free subscription prices inevitably has a significant impact on its subscribers. Here’s a closer look at how this change affects those who enjoy the streaming service:

  1. Increased Monthly Expenses: The most immediate effect is an increase in monthly expenses for subscribers. While the exact amount varies depending on the region and subscription plan, the additional cost can add up, especially for households with multiple streaming subscriptions.
  2. Budget Adjustments: Subscribers will need to reconsider their entertainment budget. Some may choose to allocate more funds for their streaming services, while others might have to cut back on other expenses to accommodate the price hike.
  3. Subscription Evaluation: Many users will likely evaluate whether Netflix still offers value for the increased price. Some may choose to downgrade to a lower-tier plan if they find they don’t need the full range of features the higher-tier plans offer.
  4. Potential Cancellations: The price increase may lead to cancellations for a segment of subscribers. Those who view the price hike as no longer justifiable might opt to cancel their Netflix subscription or switch to a more cost-effective streaming platform.
  5. Impact on Family Plans: For families or groups sharing a single Netflix account, the price increase could affect how cost-effective this arrangement remains. Some users may choose to share the additional expense, while others may reconsider shared plans.
  6. Exploration of Alternatives: Subscribers who feel that the price increase is a deal-breaker may explore alternative streaming services. Amazon Prime Video, Disney+, Hulu, and HBO Max are all potential alternatives, each with its own content library and pricing structure.

Alternatives to Netflix

For viewers looking for streaming alternatives to Netflix, there are several options available, each with its unique content library and features. Here are some popular alternatives:

  1. Amazon Prime Video: Amazon Prime Video offers a vast selection of movies, TV shows, and original content. It comes as part of an Amazon Prime membership, which includes additional perks like free shipping on Amazon orders.
  2. Disney+: Disney+ is a streaming service that specializes in Disney, Pixar, Marvel, Star Wars, and National Geographic content. It’s a go-to platform for fans of these franchises and family-friendly content.
  3. Hulu: Hulu provides a wide range of TV shows, movies, and original programming. It’s known for offering episodes of current TV shows shortly after they air, making it a great option for keeping up with the latest releases.
  4. HBO Max: HBO Max offers a collection of content from HBO, including critically acclaimed series like “Game of Thrones” and “Succession.” It also features a variety of movies, documentaries, and original shows.
  5. Apple TV+: Apple TV+ showcases original content created by Apple. It features a growing catalog of exclusive series, movies, and documentaries, making it a unique option for Apple users.
  6. Peacock: Peacock is NBCUniversal’s streaming service, offering a mix of classic TV shows, movies, news, and original content. It has both free and premium subscription options.
  7. Paramount+: Formerly known as CBS All Access, Paramount+ provides access to a range of CBS, Viacom, and Paramount content. It’s a good choice for fans of CBS programming and classic shows.
  8. YouTube TV: While not a traditional streaming service, YouTube TV offers live TV channels and a cloud DVR service, making it a great option for those who want to watch live sports, news, and events.
  9. Crave: Crave is a streaming service in Canada that offers a wide selection of TV shows and movies, including HBO content, making it an alternative for Canadian viewers.
  10. Vudu: Vudu is an on-demand streaming service known for its extensive library of movies and TV shows available for rent or purchase. It’s a great choice for those who want to access the latest releases.

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In conclusion, Netflix’s decision to raise ad-free subscription prices has drawn mixed reactions from users. The increase is primarily driven by the rising costs of content creation and the need to remain competitive in a crowded streaming market. While some users appreciate the value Netflix provides, others are concerned about the impact on their budget. Exploring alternative streaming platforms and managing your subscription wisely can help users navigate this change effectively.

FAQs(Users React to Netflix’s Plan to Raise Ad-Free Subscription Prices)

Why is Netflix raising prices?

Netflix is raising prices to cover the escalating costs of creating original content and to remain competitive in the streaming market.

How much will the price increase be?

The price increase varies by region, but it generally includes a few extra dollars added to the monthly subscription fee.

What are the alternatives to Netflix?

Some alternatives to Netflix include Amazon Prime Video, Disney+, Hulu, and HBO Max.

Can I still get an ad-free subscription?

Yes, Netflix continues to offer ad-free subscriptions, but the prices may be higher than before.

How can I reach Netflix customer support?

You can contact Netflix customer support through their website or app for any inquiries or concerns you may have.