×

Netflix Hikes Eurozone Prices For New Subscribers

But bump will not dent sub surge, say analysts

Making good on Netflix CEO Reed Hastings’ heads-up last month that the company will hike prices for its streaming business, Netflix has put through a 10% price rise in the Eurozone for its standard two-stream HD subscription service. Cost hike immediately affects only new members.

Analysts doubt, however, that the price bump will cause any significant exodus of clients from Netflix’s burgeoning – and already significant – Euro business.

Previously priced at €8.99 ($9.90) per month, as of Monday, Aug. 17, Netflix’s two-stream HD plan is now being sold at €9.90 ($10.90) in the Euro Zone, where Netflix now operates, for example, in France, Germany and Netherlands. In affluent – and pricey – Switzerland, this service will now cost CHF 14.90 ($15.20), up from CHF 12.90 ($13.20).

“As a thank you to existing members, their current plan and price will not change for one year,” a Netflix source said Tuesday. Nor will the price hikes affect either Netflix’s basic one-stream-at-a-time, standard-definition service – which costs €7.99 ($8.80) in France – or its premium four-streams-at-a-time offer (€11.99; $13.30), which includes access to Ultra HD 4K content.

Echoing an email sent to new U.S. subscribers in 2014, when it announced a U.S. price hike from $7.99 to $8.99, a Netflix source justified the price rise to Variety “to continue adding more TV shows and movies, including many Netflix original titles.”

The bump comes as Netflix is plowing into original content production in Europe, seen in its first commissioned French-language TV series, “Marseille,” produced by Paris and L.A.-based Federation Entertainment and starring Gerard Depardieu.

Production of original content is “an ongoing strategic goal” for Netflix, said Guy Bisson at Ampere Analysis. “Clearly, production is more expensive than acquisition, but when a company is pan-regional and needs to use rights flexibly, it gets that with original production.”

Netflix’s international subscriptions stood at 23 million at the end of June, compared with 42 million in the U.S. Netflix’s take-up in continental Europe has not been officially broken out, but is thought to be already substantial. Ampere Analysis estimates Netflix customers for the second quarter of 2015 at 1.9 million for Germany, 1 million in the Netherlands and 900,000 for France.

The Netflix fee hike is unlikely to create huge churn, however. “I don’t think the price rise is an issue,” said Francois Godard, at Enders Analysis. “There is such a big difference in price points between Netflix and traditional pay-TV services that at this time Netflix’s hike is not a deterrent for users.” France’s giant paybox Canal Plus costs around €40 ($44.20) per month.

Elsa Keslassy contributed to this article.

Popular on Variety

More Digital

  • Tiger King

    'Tiger King' Ranks as TV's Most Popular Show Right Now, According to Rotten Tomatoes

    Netflix has a tiger tale that has punched into the zeitgeist with “Tiger King,” stocked with a cast of real-life bizarre personalities and sinister plot twists. “Tiger Tale,” a true-crime-style docuseries that debuted March 20 on Netflix, ranks as the most popular current TV show, according to Rotten Tomatoes. It has a 97% critic’s rating [...]

  • Alex Jones

    Google Removes Infowars Android App From Online Store Over Coronavirus Misinformation

    Google on Friday removed the Android version of the Infowars app from the Google Play online store, after comments made by Infowars founder Alex Jones about the COVID-19 pandemic were deemed false and harmful. Google Play was that last major internet platform that provided an outlet for Infowars, which trades in right-wing conspiracy theories and [...]

  • Van Weezer

    Weezer Debuts Online Video Game as Throwback to Simpler Times -- And Album Promo

    Eight-bit diehards, get your thumbs ready: pop rock darlings Weezer have launched a nostalgia-heavy online side-scrolling action game, playable via web browsers.  The “The End of the Game” game has users playing as one of the band’s four members and jumping and shooting their way in a (surprisingly difficult) boss fight against an oversized, beanie-clad [...]

  • Google-Mountain-View-Calif

    Google Commits $800 Million, Mostly in Ad Credits, to Coronavirus Relief Efforts

    Google and parent Alphabet are pitching in to help small businesses, health organizations and governments dealing with the COVID-19 pandemic. The internet company has earmarked more than $800 million for coronavirus relief, about three-fourths of which ($610 million) is in the form of Google Ad credits to small and midsize businesses and governmental orgs, Alphabet [...]

  • Why Are Music Streams Down If

    Why Are Music Streams Down If Everyone's Stuck at Home? Experts Weigh in

    While it might seem counterintuitive that music streams would decline at a time when so many Americans were ordered to stay home, data-savvy label executives were neither startled nor concerned by the 7.6% drop in plays that happened in the March 13-19 tracking week. Simply put, they say it’s down to focus on news and [...]

More From Our Brands

Access exclusive content