Netflix Rises Prices for Two Streaming Options

It seems like fans of the popular series and movies on Netflix will have to dig a little deeper in their pockets from now on. Why? The company has recently decided that it’s time to raise the prices of two of its streaming options. According to a Thursday announcement, its most popular streaming plan will no longer cost $9.99 per month, but $10.99. This is the plan that allows viewers to watch Netflix content on two separate, internet-connected devices, at the same time. As for the other plan, the one that lets people watch Netflix on up to four devices at the same time, it will cost $13.99 from now on, up from $11.99.

Netflix raising prices

According to the company, starting October 19, its subscribers will start receiving email notifications regarding this change. Netflix will reportedly offer the customer 30 days to either accept or refuse this increase, or to switch to a cheaper plan. The last time the company increased its prices was in October 2015.

However, this price increase shouldn’t come as a surprise for anyone, especially considering Netflix’s future ambitions. According to them, the plan is to spend about $6 billion only this year in order to acquire and produce its own original content. It’s also worth noting that this price increase will only affect customers in the United States. With the new pricing plan, Netflix should get about $700 extra millions in revenue. There are currently 50 million subscribers in the United States, plus those that will join the service next year. So, the idea to increase the prices could prove to be extremely efficient and beneficial.

Netflix is one of those streaming services that wants to base its success on original content. Rivals like Amazon and Hulu have been doing the same thing. Recently, Hulu’s series, The Handmaid’s Tale won the Emmy Award for Best Drama. Actually, it was a premiere in that regard. No other internet-streaming series ever won an Emmy.

A profitable strategy

It’s interesting that back in 2011, when Netflix stopped including both DVD rentals and streaming in a subscription, it lost hundreds of thousands of customers. Still, that will not be the case now, because the streaming service has become too important to be ignored. People will still watch its programs and most of them might not even notice the increase.

Image source: flickr

 

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