Netflix Plans Increase in Subscription Fee
Online media streaming service Netflix is planning to up its subscription price within the next year by approx. $1-$2. Now before you all grab the pitchforks and torches and that guy from Spongebob is heard screaming “my leg!,” let me clarify this for you. The company is planning on increasing their price by those rates, but only for new members starting within the next couple of months. If you are an existing member you will continue to pay the same price for a “generous time period.”
“If we want to continue to expand, to do more great original content… we have to eventually increase prices a little bit,” said Netflix CEO Reed Hastings over a conference call with analysts on Monday. The “great original content” of course includes their hit shows House of Cards (which released it’s second season back in February) and Orange is the New Black (which releases it’s second season on June 6th).
Along with needing to generate more revenue for more original content, Netflix must also find new ways to compete with the growing online streaming service community which includes Hulu (and Hulu Plus), HBO Go and Amazon Instant Video. By upping their cost by only a couple of dollars each month, Netflix can find more ways to remain the most popular content provider. They now charge $8/Month (or $96/Year) and the increase would take the rate to $9 or $10/Month ($108 or $120/Year). Their service is currently subscribed to by 36 million customers in the US and 48 million globally.