
News + Trends
Every year again - Netflix turns the price screw
by Luca Fontana

It happens all the time. Plan providers put their prices up, customers get angry, a shitstorm ensues. And in the end, so few people cancel that the move was still worthwhile for the company.
I’m no role model in this department either, believe me. Many of the plans I’m subscribed to have become significantly more expensive in recent years. Take my HP printer plan, for example. I currently pay 6.90 francs a month for it. When I signed up, it was 34 per cent cheaper. I still have Netflix too, and didn’t realise how much more expensive it’s become until I saw the brutal truth in Luca’s post.
Only recently, Swisscom announced it would be increasing its plan prices for private customers in Switzerland, applying the rise to almost all its offers. We’re talking CHF 1.90 per month for internet and mobile, and 90 cents for TV and landline. A clever move, seeing that 1.90 sounds like a lot less than two francs. And 90 cents? Peanuts, right?
And this brings us to the first reason why people with Swisscom plans will probably accept the price hike, even if they’re not jumping for joy. The walk-away level is likely to be higher for most people, as they’re already paying too much for their plan, as price comparison services keep on pointing out. Many customers think about the cost of switching in relation to the supposedly small price increase. But the comparison is flawed, because they’re losing more than just an extra CHF 1.90 each month. If they switched to a cheaper provider, they’d dodge the price increase, plus benefit from tariffs that are significantly lower than Swisscom’s were even before the price increase in April.
Companies obviously know all this. They generally know how many customers they’ll lose after a price increase. On the other hand, they’ve calculated exactly how much more turnover they can make with ones that stay. And because things almost always works out in their favour in the end, they keep on increasing prices.
If you want to cancel a plan, you have to take action. Dealing with customer service over the phone, finding the right button in the depths of the menu of your customer account, or researching alternative providers. Frankly, all of that’s exhausting. With some services, we also like to tell ourselves that there’s no viable alternative. But there is. Take Netflix, for example. If you’re not using it much, it’s almost certainly cheaper to buy the series or movies on Blu-Ray or on demand. I’m currently spending 275 francs a year on Netflix. But laziness will probably win and I’ll put up with the next price increase, too.
Do you know anyone who cancelled Spotify? There have been plenty of reasons to do so. Price increases for one, but also a tsunami of AI music, lousy remuneration for artists, questionable investments in arms deals by the CEO, commercials for ICE, the US immigration police (pages in German). However, the number of users continues to rise and currently stands at over 700 million worldwide. Spotify has become a routine for many people, even a part of their lives. Lovingly curated playlists and subscriptions to those of their friends, staying up to date with followed artists and a familiar user interface.
Switching to another provider would mean losing habits and data. Sure, there are tools that facilitate and support making the switch. In Germany, for example, Apple has integrated a feature into Apple Music. But then laziness rears its ugly head, as described in reason 2.
Which plan price increases have you put up with? What’s your personal limit? Do you have any tricks that help beat laziness and FOMO?
Journalist since 1997. Stopovers in Franconia (or the Franken region), Lake Constance, Obwalden, Nidwalden and Zurich. Father since 2014. Expert in editorial organisation and motivation. Focus on sustainability, home office tools, beautiful things for the home, creative toys and sports equipment.
Interesting facts about products, behind-the-scenes looks at manufacturers and deep-dives on interesting people.
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