Netflix is going to make some of its subscription plans more expensive. Even though they’ve been doing well at stopping people from sharing passwords, they’re still raising prices. In the UK, the basic plan will cost £1 more at £7.99, and the premium plan will cost £2 more at £17.99. In the US, the premium plan will cost $3 more at $22.99, and in France, it will cost €2 more at €19.99.

Some people were worried that Netflix wouldn’t be able to get new customers because of competition, higher prices, and delays in new shows. But actually, they added 8.8 million new subscribers from July to September, which is the most in over two years. They did this by charging extra for people who share their account with other households, and by offering a cheaper plan with ads.

Netflix thinks that people will keep watching their shows because they have a mix of popular shows they made themselves and shows they bought from other companies. They know that buying shows from other companies is important, especially now that there’s a strike in Hollywood and new shows aren’t being made.

Netflix is doing really well financially. They made 7.8% more money in the last three months, and they made $1.67 billion in profits. They want more people to switch to the cheaper plan with ads because they think it will make them even more money. That’s why they’re making the basic plan more expensive, so people will choose the cheaper one instead.

Experts think that Netflix will keep raising prices in the future to make sure they keep making money. They also think that Netflix will start doing other things, like opening stores and places where people can eat and have “Netflix experiences.” After they announced the price increase, the value of Netflix shares went up by more than 10%.

Original news source: Netflix raises prices despite password crackdown success (BBC)

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Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions:
1. Divide the class into pairs.
2. Give each pair a few minutes to read the article.
3. Instruct one student to summarize the main points of the article to their partner.
4. Have the partners switch roles and summarize the article again.
5. Bring the class back together and ask a few pairs to share their summaries with the whole group.

– Opinion Poll
Instructions:
1. Divide the class into small groups.
2. Assign each group a specific question related to the article, such as “Do you think Netflix’s price increase is justified?” or “Would you switch to the cheaper plan with ads?”
3. Give the groups time to discuss their opinions and come up with reasons to support their stance.
4. Have each group present their opinions and reasoning to the rest of the class.
5. Facilitate a class discussion where students can share their own opinions and respond to the arguments presented by other groups.

– Vocabulary Pictionary
Instructions:
1. Write a list of key vocabulary words from the article on the board.
2. Divide the class into small groups.
3. Instruct each group to choose one word from the list and draw a picture that represents that word.
4. Give the groups a few minutes to draw their pictures.
5. Have each group take turns presenting their picture to the class, while the rest of the class tries to guess the corresponding word.

– Pros and Cons
Instructions:
1. Divide the class into two groups.
2. Assign one group to discuss the pros of Netflix’s price increase, and the other group to discuss the cons.
3. Give the groups time to brainstorm and come up with reasons to support their assigned stance.
4. Have each group present their arguments to the rest of the class.
5. Facilitate a class discussion where students can share their own thoughts and opinions on the pros and cons discussed.

– Future Predictions
Instructions:
1. Instruct each student to write down three predictions about the future of Netflix based on the information in the article.
2. Divide the class into pairs and have the students share their predictions with their partner.
3. Encourage the students to discuss and debate the likelihood of each prediction.
4. Bring the class back together and ask a few students to share their predictions with the whole group.
5. Facilitate a class discussion where students can compare and contrast their predictions and provide reasoning for their opinions.

Comprehension Questions:

1. Why is Netflix raising the prices of some of its subscription plans?
2. How many new subscribers did Netflix add from July to September?
3. How did Netflix attract new subscribers?
4. Why does Netflix think people will continue to watch their shows?
5. How well is Netflix doing financially?
6. Why does Netflix want more people to switch to the cheaper plan with ads?
7. What do experts think Netflix will do in the future?
8. What happened to the value of Netflix shares after the price increase was announced?
Go to answers ⇩

Listen and Fill in the Gaps:

(1)______ is (2)______ to make some of its (3)______ plans more expensive. Even though they’ve been (4)______ well at stopping people from sharing passwords, they’re still raising prices. In the UK, the basic plan will cost £1 more at £7.99, and the premium plan will cost £2 more at £17.99. In the US, the premium plan will cost $3 more at $22.99, and in France, it will cost €2 more at €19.99.

Some people were worried that Netflix wouldn’t be able to get new customers because of (5)______, higher prices, and (6)______ in new shows. But actually, they added 8.8 million new subscribers from July to September, which is the most in over two (7)______. They did this by (8)______ extra for people who share their account with other households, and by offering a cheaper plan with ads.

Netflix thinks that people will keep watching their shows because they have a mix of popular shows they made themselves and (9)______ they bought from other companies. They know that buying shows from other companies is important, especially now that there’s a (10)______ in Hollywood and new shows aren’t being made.

Netflix is doing really well financially. They made 7.8% more (11)______ in the last three months, and they made $1.67 billion in (12)______. They want more people to switch to the cheaper plan with ads because they think it will make them even more money. That’s why they’re making the basic plan more expensive, so people will choose the cheaper one instead.

Experts think that Netflix will keep (13)______ prices in the (14)______ to make sure they keep making money. They also think that Netflix will start doing other (15)______, like opening stores and places where people can eat and have “Netflix (16)______.” After they announced the price increase, the value of Netflix shares went up by more than 10%.
Go to answers ⇩

Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is Netflix and why is it popular?
2. How would you feel if Netflix raised its prices? Why?
3. Do you think it’s fair for people to share their Netflix account with others? Why or why not?
4. Have you ever shared your Netflix account with someone else? Why or why not?
5. What do you think about Netflix offering a cheaper plan with ads? Would you choose that option? Why or why not?
6. How important is it for Netflix to buy shows from other companies? Why?
7. How do you think the strike in Hollywood affects Netflix?
8. Do you think Netflix will continue to be successful in the future? Why or why not?
9. How do you think opening stores and “Netflix experiences” would benefit Netflix?
10. Would you be interested in going to a Netflix store or having a “Netflix experience”? Why or why not?
11. How do you feel about companies raising prices to make more money?
12. Do you think it’s worth paying more for a subscription if it means getting access to more shows? Why or why not?
13. What other streaming services do you use, and how do they compare to Netflix?
14. How do you think the increase in prices will affect Netflix’s competition with other streaming services?
15. Do you think it’s a good idea for Netflix to focus on making more money, or should they prioritize providing affordable plans for their customers? Why or why not?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. subscription
2. prices
3. competition
4. delays
5. subscribers
6. profits
7. cheaper
8. shares

Meanings:
(a) Other companies that are trying to be better than you
(b) Pieces of a company that you can buy or sell
(c) When something doesn’t happen as quickly as expected
(d) A plan that you pay for regularly
(e) People who pay to use a service or watch a show
(f) Not as expensive as something else
(g) The money you make after you pay all your expenses
(h) The amount of money you have to pay
Go to answers ⇩

Multiple Choice Questions:

1. Why is Netflix raising its subscription prices?
(a) To stop people from sharing passwords
(b) To compete with other streaming services
(c) To make more money
(d) To encourage people to watch more shows

2. How much more will the premium plan cost in the UK?
(a) £3
(b) £2
(c) £1
(d) £4

3. How many new subscribers did Netflix add from July to September?
(a) 5 million
(b) 10 million
(c) 8.8 million
(d) 2 million

4. How is Netflix trying to get more customers?
(a) Lowering their prices
(b) Making their shows more popular
(c) Buying more shows from other companies
(d) Charging extra for shared accounts and offering a cheaper plan with ads

5. Why is buying shows from other companies important for Netflix?
(a) They want to support other companies
(b) They want to have a variety of shows to offer
(c) They want to make sure their shows are popular
(d) There is a strike in Hollywood and new shows aren’t being made

6. How much more money did Netflix make in the last three months?
(a) 7.8%
(b) $1.67 billion
(c) $2 million
(d) 10%

7. What does Netflix want people to do with the cheaper plan?
(a) Switch to it and watch shows with ads
(b) Share it with other households
(c) Cancel their subscription
(d) Watch more shows

8. How did the value of Netflix shares change after the price increase was announced?
(a) It went down by more than 10%
(b) It went up by more than 10%
(c) It stayed the same
(d) It fluctuated throughout the day

Go to answers ⇩

True or False Questions:

1. Netflix added 8.8 million new subscribers from July to September, which is the highest number in over two years.
2. Experts predict that Netflix will continue to raise prices in the future and may explore new ventures like opening stores and creating “Netflix experiences.”
3. In the UK, the basic plan will continue to cost £6.99, and the premium plan will continue to cost £15.99.
4. Even though they failed to prevent password sharing, Netflix is not raising prices.
5. Netflix is not planning to increase the prices of any of its subscription plans.
6. In the US, the premium plan will not cost $22.99 more, and in France, it will not cost €19.99.
7. Netflix believes that their mix of popular original shows and shows from other companies will keep viewers engaged.
8. Netflix achieved this by charging extra for account sharing and introducing a cheaper plan with ads.
Go to answers ⇩

Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. Why is Netflix raising the prices of some of its subscription plans?
2. How many new subscribers did Netflix add from July to September?
3. How is Netflix trying to encourage people to switch to the cheaper plan with ads?
4. How much money did Netflix make in profits in the last three months?
5. What do experts think Netflix will do in the future to make more money?

Answers

Comprehension Question Answers:

1. Why is Netflix raising the prices of some of its subscription plans?
Netflix is raising the prices of some of its subscription plans to make more money and ensure their financial success.

2. How many new subscribers did Netflix add from July to September?
Netflix added 8.8 million new subscribers from July to September.

3. How did Netflix attract new subscribers?
Netflix attracted new subscribers by charging extra for people who share their account with other households and by offering a cheaper plan with ads.

4. Why does Netflix think people will continue to watch their shows?
Netflix thinks people will continue to watch their shows because they have a mix of popular shows they made themselves and shows they bought from other companies.

5. How well is Netflix doing financially?
Netflix is doing well financially. They made 7.8% more money in the last three months and made $1.67 billion in profits.

6. Why does Netflix want more people to switch to the cheaper plan with ads?
Netflix wants more people to switch to the cheaper plan with ads because they believe it will generate even more money for them.

7. What do experts think Netflix will do in the future?
Experts think Netflix will continue to raise prices to ensure their financial success. They also believe Netflix may start opening stores and places where people can have “Netflix experiences.”

8. What happened to the value of Netflix shares after the price increase was announced?
After the price increase was announced, the value of Netflix shares went up by more than 10%.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) Netflix
(2) going
(3) subscription
(4) doing
(5) competition
(6) delays
(7) years
(8) charging
(9) shows
(10) strike
(11) money
(12) profits
(13) raising
(14) future
(15) things
(16) experiences
Go back to questions ⇧

Vocabulary Meanings Answers:

1. subscription
Answer: (d) A plan that you pay for regularly

2. prices
Answer: (h) The amount of money you have to pay

3. competition
Answer: (a) Other companies that are trying to be better than you

4. delays
Answer: (c) When something doesn’t happen as quickly as expected

5. subscribers
Answer: (e) People who pay to use a service or watch a show

6. profits
Answer: (g) The money you make after you pay all your expenses

7. cheaper
Answer: (f) Not as expensive as something else

8. shares
Answer: (b) Pieces of a company that you can buy or sell
Go back to questions ⇧

Multiple Choice Answers:

1. Why is Netflix raising its subscription prices?
Answer: (c) To make more money

2. How much more will the premium plan cost in the UK?
Answer: (b) £2

3. How many new subscribers did Netflix add from July to September?
Answer: (c) 8.8 million

4. How is Netflix trying to get more customers?
Answer: (d) Charging extra for shared accounts and offering a cheaper plan with ads

5. Why is buying shows from other companies important for Netflix?
Answer: (d) There is a strike in Hollywood and new shows aren’t being made

6. How much more money did Netflix make in the last three months?
Answer: (a) 7.8%

7. What does Netflix want people to do with the cheaper plan?
Answer: (a) Switch to it and watch shows with ads

8. How did the value of Netflix shares change after the price increase was announced?
Answer: (b) It went up by more than 10%
Go back to questions ⇧

True or False Answers:

1. Netflix added 8.8 million new subscribers from July to September, which is the highest number in over two years. (Answer: True)
2. Experts predict that Netflix will continue to raise prices in the future and may explore new ventures like opening stores and creating “Netflix experiences.” (Answer: True)
3. In the UK, the basic plan will continue to cost £6.99, and the premium plan will continue to cost £15.99. (Answer: False)
4. Even though they failed to prevent password sharing, Netflix is not raising prices. (Answer: False)
5. Netflix is not planning to increase the prices of any of its subscription plans. (Answer: False)
6. In the US, the premium plan will not cost $22.99 more, and in France, it will not cost €19.99. (Answer: False)
7. Netflix believes that their mix of popular original shows and shows from other companies will keep viewers engaged. (Answer: True)
8. Netflix achieved this by charging extra for account sharing and introducing a cheaper plan with ads. (Answer: True)
Go back to questions ⇧