I’ve refrained from talking about this since the news broke out that Netflix will, in fact, be increasing their subscription rate for the first time in years. I was waiting to form an opinion that was slightly less negative, so here it is.
The standard price has been $7.99/month since 2010, and that of course encompasses unlimited streaming of hundreds (if not thousands) of TV shows and movies with no commercials.
It’s an incredible value, and I’m actually pretty surprised the company has waited this long to start pressing their huge customer base for more cash. My theory is that they’ve waited to make sure enough people are addicted to their service, thus making this decision more profitable in that fewer people will cancel their subscription over a price increase.
The increase in question will raise the monthly rate by one or two dollars, so hovering around $9.99 a month or more. They’ve tried this in Ireland, and it has apparently worked well there for Netflix.
Reed Hastings (CEO of Netflix) argues that the price increase is crucial if they want to continue developing original content, such as House of Cards and Orange is the New Black, their biggest streaming hits in terms of in-house production. It’s easy to assume, however, that this was their game plan all along.
And I don’t have a problem with that at all. In my eyes, Netflix has consistently provided a great service at a steady price, and this is an essential move for them in order to stay afloat and continue giving us a great library of streaming media. This is especially true now that other streaming companies are providing tough competition, including Hulu Plus, Amazon Prime, Vudu and HBO Go.
But what do you think? Is Netflix making the right move here, or is this leading us down a slippery slope of customers getting gouged for money? We learned in the 80s that cable companies were absolutely capable of this…
Thanks for Reading! You can subscribe to this blog by email via the prompt on the sidebar. Otherwise, be sure to stay connected with me on Twitter (@JonNegroni). I’ll follow you back if you say something witty and awesome.
So you think the price increase by Netflix is cute? I live in the San Fernando Valley in Los Angeles County since 1956. I now live on and pay my bills with my puny Social Security check each month. I have had a cable service long before Time Warner Communications was ever heard of. You want to talk about getting screwed over all of those years by price inreases? During the time I have been with this Monkey Shit Co. my monthly bill has gone up and up at least $180.00 a month. I get OLD Movies, so many stations where they don’t even speak my English Language and so many movie stations that are showing the same movies at the very same time that you can change channels and the movie is at the very same scene in both channels. I finally got so fed up with my high bills(which are up to $235.00 a month now) that I cancelled 3 of my high priced movie channels. BOOMP-BOOMP-BOOMP. I got a $30.00 discount on my monthly bill. It is now 4 months since that “slam bang, thank you mam” so-called Time Warner courtesy that my bills are higher now minus the 3 movie stations I gave up a small period ago.I am so fed-up with with everything that goes on in this country and the rotten politicians we have telling us what to do with our families and the way we live our lives that I am ready to jump off of the tallest mountain in the world. I wonder how many other millions of people feel the same way that I do too? Let’s hear it “HUMAN BEEINGS!”
As a student who sometimes struggles to make rent, my first reaction to this price increase was fairly negative as well. But from a business perspective, I definitely think this is the right call. $10 for virtually unlimited movie and TV watching? That’s still a wicked awesome deal. What I appreciate more than anything is the fact that Netflix waited as long as they did before upping the price. I’m with you on this one.
Netflix CEO Reed Hastings says that the price rise is necessary if the company is to invest in the creation of original content like House of Cards dordle and Orange is the New Black, two of Netflix’s most successful streaming series to date that were created in-house. Nonetheless, it’s reasonable to believe that this was their goal all along.
No customer likes price increases. But even at $10/mo (if that’s what it goes to) it will still be a great deal for anyone who spends a significant amount of time watching movies and TV shows online. Sure, it’s possible to get much of the content free at pirate sites. But the streaming is generally slow and choppy, the quality poor, and the risk of viruses–not to mention just plain annoying stuff–is high. $10/mo for unlimited high quality, smooth streaming of a large library of titles is well worth it as far as I’m concerned. And I presume Netflix is monitoring the situation very closely when it comes to possibly losing market share to the competition.
I’m excited to see what we the customers will get out of this new price increase…surely Netflix will rationalize the increase with more popular movies, more content in general, or something unknown. Either way $10 a month is NOTHING compared to cable or a satellite, and for that reason Netflix will keep my business; I just hope they don’t realize that and knock up the price further!