Today’s news is centered around Netflix increasing its subscription fees for U.S. subscribers in what seems to be the biggest increase since the company’s launch. Find out more about this in this article.
Raise in Netflix Prices for US subscribers
A Netflix spokesperson issued a statement saying: “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members.” The cost will increase up to 13 to 18 percent depending on the plan you’re subscribed to.
As far as the most popular plan goes, the price will go up from $10.99 to $12.99 per month. That has to do with the fact that the plan includes high-definition streaming for up to two devices simultaneously. The one-device plan, on the other hand, will be raised to $8.99 on a monthly basis, and the four-device plan will reach $15.99.
Related: What’s Coming to Netflix in February 2019
Why did Netflix Raise its Prices?
This was bound to happen sooner or later. How else will Netflix fund its constantly growing production of original content? This is a predictable move on Netflix’s behalf, especially when the company is heavily investing in new programmes and shows.
Other companies like Disney, AT&T/Warner Media and NBC Universal plan on launching services of their own. This means they won’t need to license their content to Netflix. That also explains the hike in Netflix’s pricing. There are growing concerns about what would happen to Netflix’s subscriber count if competitors were to pull their licensed content from the service to make it exclusive to their own. It’s safe to say that many consumers have reacted negatively to the news as this price hike might drive subscriber aways.
When Will this Begin?
Last year, Netflix raised prices for its higher-tier plans but made no changes to the cheapest plan that costs $7.99 per month. You’ll be expected to pay more for Netflix depending on your billing cycle. However, from the looks of it, this price changes won’t take long to be set in motion.
This also applies to Latin American and Caribbean markets but not to Mexico and Brazil. The extra money will help finance Netflix’s huge investment in original shows and films. Apparently, this is the only way Netflix can ward off competitor services.
Raise in Netflix Prices for US subscribers- Conclusion
The company’s search for content means it has to spend big amounts of money. That would explain the increase in prices. So, it’s kind of like this… do you want new original Netflix content? Then cough up the dough. When do you think this change will become effective? Are you with or against it? Share your thoughts.