America’s leading streaming service, Netflix, announced on Jan. 15 that they will be hiking up the prices on all subscription plans.
This is the most drastic price raise since 2011 according to Today News.
The standard plan has risen from $10.99 to $12.99 and the premium hiked from $11.99 to $15.99 per month. The cheapest subscription has only been bumped a dollar, $7.99 to $8.99.
The new standard plan allows subscribers to stream on two screens at a time in HD, while the premium optimizes up to four screens at a time with HD and ultra HD.
The updated rates will go into effect instantly for new subscribers in the U.S. and will be applied to pre-existing accounts within the next few months.
Customers will be updated about the price hike via email and through the Netflix app at least 30 days before it takes effect.
Netflix hopes this will help pay their financial debts for the endless amount of tv shows and movies to choose from, and account sharing, to fund new and improved content.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company stated.
While Netflix is the most watched streaming service, they do have competitors such as Hulu, Amazon Prime and HBO Now.
This change in prices is testing some of their most loyal customers, possibly forcing them to resort to Netflix’s rivals.
People resorted to social media to express their disapproval.
They question why Netflix spent $100 million to keep the classic ‘90s series Friends but continued to cancel shows that were exceptionally liked by the general public.
One of the main reasons people were attracted to Netflix was because of their low prices, but could this steer people to the opposite direction?
There has also been a rumor that Netflix is considering inserting advertisements and cracking down on password sharing, which, if we’re being honest, is how most people watch Netflix, through other people’s accounts.
According to Advanced Television‘s survey, 27 percent of US subscribers might cancel after this price hike, which can be detrimental to Netflix’s stock rates, causing more damage than good with this change.
Opposing that argument, some customers looked at it in a more positive light.
After all, Netflix is still cheaper than their competitors, and has provided us with amazing content in the last few months such as: Bandersnatch, Bird Box, and highly-favored Lifetime show You which was watched by 40 million people in the first four weeks.
In the end, this is Netflix’s fourth time raising prices, most recent raise in October of 2017.
Each time they receive backlash and each time the company finds a way to knock everyone’s shoes off with hit shows and movies.
