Since Netflix came to New Zealand in March 2015, streaming has become the default way many people watch television. Photo: Unsplash
The success of advertising within Netflix is behind an increase in subscription prices, according to one expert.
Netflix users will see a bump in their bills by between $3 and $6 a month for the streaming service.
A basic subscription in New Zealand jumps from $14.99 to $17.99 a month; its standard plan from $20.99 to $25.99, and its premium plan would rise from $27.99 to $33.99.
Adding extra members to standard or premium plans would also cost more - from $7.99 to $9.99 per person.
The world's largest streaming service upped its prices to New Zealand customers in February last year, and before that in September 2021.
It's not the only provider to hike prices amid an uncertain market with Disney+ doing the same in February.
RNZ's film reviewer Dan Slevin told Midday Report viewers shouldn't take the increases personally.
"These are global price rises. They're led by North America. Here in New Zealand we're not strategic in terms of Netflix.
"We're a cash-cow frankly and if prices are going up in North America they'll be going up in the rest of the world as well."
Slevin said the reason behind the price increase in the United States related to advertising success.
"In North America, Netflix and also Disney and Prime... their entry level packages are supported by advertising so when you pay your cheapest rate your shows are interrupted with ads.
"And what they have discovered is that actually that programme has been incredibly successful. There's been a lot of buyers for those ads.
"It means that the revenue per customer on that entry level package in North America has actually been much higher than they thought it would be and the result is that they have to put the prices up for everybody else so that the revenue per customer matches what their entry-level package is worth."
Slevin said there could be an impact on the viewing habits of Kiwis in that many might consider dropping from a premium plan to standard.
He said viewers could pick and choose based on what was available on any given month on streaming services, but he believed with Netflix the opposite was more likely to be the case.
"It's relatively easy to churn a streaming service. You suspend your membership for a couple of months and then when something good turns up you just re-subscribe.
"The problem with Netflix is because they're so huge, I mean $17 billion worth of spend on new content every year, that's US dollars - there's usually something there that people want."
Slevin said the most costly content didn't necessarily equate to the most viewers.
"One of the most expensive movies ever made - the Russo brothers' The Electric State - $350 million, nobody's wanting to watch it. But everybody wants to watch Adolescence and Netflix didn't expect that.
"There's usually something on Netflix for people to sustain and wear that cost."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
