Posted on 01/15/2019 8:01:31 AM PST by EdnaMode
Netflix subscribers in the United States are about to see a price hike across all subscription tiers.
The service’s most popular plan will increase from $11 to $13 per month for HD streaming. Netflix’s most expensive plan, which offers 4K content and up to four simultaneous streams on different devices, will increase from $14 to $16. And the service’s basic plan, which doesn’t offer HD, will raise from $8 to $9.
These price hikes will affect all new subscribers immediately, according to AP, with current subscribers set to experience the hike over the next three months.
Netflix CEO Reed Hastings has said in the past that incremental price hikes will be needed as the company invests more money in original series and licensing popular programming.
“Price is all relative to value,” Hastings said in late 2017, the last time American subscribers saw an increase. “We’re continuing to increase the content offering and we’re seeing that reflected in viewing around the world.”
Original series and licensed content don’t come cheap. Netflix reportedly spent $100 million on retaining the streaming rights to Friends, one of the streaming service’s most popular series, according to various reports. The streaming service is also investing heavily in building its own exclusive library. It had approximately 700 original shows in 2018 alone and is expected to develop more this year.
As other streaming services like Hulu — and new platforms like Disney+, WarnerMedia, and NBCUniversal’s recently announced service — start to flood the landscape, Netflix will have to continue investing in original content and films to keep subscribers interested. Netflix currently has 58 million domestic subscribers, according to the company’s most recent investors meeting, with close to 80 million international subscribers.
Developing a slate of foreign TV series and films, like the Golden Globe winning Roma, directed by Alfonso Cuarón, is also a top priority for the company. Netflix has amassed approximately $8 billion in longterm debt as of September 2018 — a cost of investing so heavily and so quickly in original content. Jon Landgraf, FX Networks president, told a group of reporters in 2016 that Netflix’s rapid growth seemed unsustainable.
“I think it would be particularly bad if anyone in one company, and I don’t care what company that is, if they were able to seize a 40 or 50 or 60 percent market share in storytelling,” Landgraf said at the time. “They can’t double again and double again and double again because the entire earth’s surface would be covered in Netflix shows in 20 years.”
The Verge has reached out to Netflix for additional details.
We dropped them when they made excuses why they hired Susan Rice. We have internet ($45) per month and Hulu live——Month to month. I love no contracts. If Hulu pulls this crap-—Bye Bye.
FWIW, I don’t consider it beating my head against a stone wall. I’m becoming an even better cook because we eat out less. Because we watch zero broadcast tv, very little cable and streaming, we’ve got an excellent library of both books and dvds. We have found other things to do, other ways to do do/buy/make what we need. I’m enjoying the challenge. :-)
We completely cut the cord years ago. It is not for everyone. But at this point cable no longer offers value that can compete. The process for us really started with Netflix streaming. The streaming market is now getting saturated with alternatives, so I do not know whether Netflix can really get away with raising their prices without loosing a lot of customers.
Free? At 35 bucks a month! Did you go to a public skool or what?
Exact same here. Hulu Live has the large majority of the sports I want to see. Sports is about all I watch, really. I couldn’t care less about the latest sitcom or drama.
Good for you,I have become VERY lazy in my dotage.
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Never used it so not affected at all.
We watch Cheer’s. Its not worth the money. Most of the stuff is real throw away garbage. We are getting more out of Amazon prime.
Free TV skystream 3, you have access to all netflix and all for free.
balderdash.
To leave Netflix because of some connection to the Obama’s is foolish.
I’m only keeping Netflix for “The Crown.”
If Putlocker, Couch Potato, or some of those other sites carried it, I would drop Netflix.
I dumped my cable TV three years ago.
All I need is Netflix, YouTube and Amazon Prime (which I already had anyhow for the 2-day shipping). Watch what I want when I want it and can ignore all the other noise.
Amazon prime has no Australian or Kiwi or korean or chinese or Singapore or Taiwan programming, not to mention canadian.
Can get everything... everything these clowns put out— for absolutely free, whenever one wants. Leftist claptrap, and not something to ever support. Any more than HBO/Time Warner. Break them all up.. the media money cabal and their masters.
De-fund the Left. Remember?
Nah. Need it to pay the newly signed talent. The duo of obxxx & obxxx. Such gifted writers, producers, directors, consultants.......
Got rid of DirecTV and their super expensive premium movies channels.
Now I get to watch all the streaming content I want for $11 a month, soon to be $13 a month.
Sure beats the $200+ a month I was paying to watch the same old stale movies over and over again on satellite TV.
First you consort with and pay money to traitors, then you raise prices, then you’re dead and gone.
I like good news.
I look forward to doing the same :-)
“$13 per month “
still cheaper than a single ticket to a dirty movie theater full of the ill-behaved and ill-kempt to attempt to watch an unwatchable movie ... for a family for a month of unlimited at-home streaming from a large library (SOME of which is outstanding) $13/month is still a bargain ...
We’ve ripped through all the Prime originals as well. Pretty much just waiting for the new seasons to start.
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