Netflix has been teasing the implementation of ads within low cost options. This came after announcing their first quarter subscriber losses. Many users are upset, which is understandable but their subscriber loss and price increases is something that has been a long time coming and here is why.

People may not remember this but Netflix streaming service used to be a dollar. There weren’t that many programs available at the time. As time went on, Netflix increased their library and they even started original programming like: Orange is the New Black, Lilyhammer, House of Cards. Many of their programs became critically acclaimed.

Netflix during this time did do a price increase; which is reasonable since they are putting more money in infrastructure, original content and licensing’s fees for additional programs.

As time went on, companies like Warner, Paramount, Fox, Disney started raising their license fees and in some instances all out bidding wars started over content. 2014 is a great example of this. Netflix signed a four year deal at 120 million dollars to stream Friends exclusively and in its fifth and final year which was in 2019 they had to pay Warner media 80 million dollars for the show.

In May of 2020 Warner premiered HBO Max and all of their content from Warner, Adult Swim, DC & HBO went there. In addition Paramount, Fox, Disney and Universal all created their own streaming services; which translated into less content for Netflix. This is why Netflix has increased international content like Squid Games, Alice In Borderlands, 3%, Call My Agent and others.

Netflix has committed to innovation by including interactive technology, which is similar to the “Choose Your Own Adventure” book series. Netflix has programs like Trivia Quest, Black Mirror: Bandersnatch, Unwind Your Mind to name a few.

In addition, Netflix original programs like Orange is the New Black and House of Card earned Emmy nominations. Later they created films which were nominated for Oscars; as of 2022, Netflix has 16 Oscars.

Netflix growth has been on the right trajectory and an increase in subscription price has contributed to that. Unfortunately for consumers they must raise their subscription prices and even add commercials to some of those subscription options, to remain competitive.