Netflix is rolling out the most significant pay hike to date for its subscribers.
According to Market Watch, Netflix is going to raise its U.S. subscription prices 13 percent to 18 percent depending on what type of service customers receive. The standard and most popular plan allows customers to stream in HD, as well as streaming on two different devices, will go from $11 to $13.
Netflix’s most expensive plan offers 4K content and allows customers up to four streams on different devices is rising from $14 to $16 monthly. The basic plan, which differs from the standard because it does not offer HD viewing, is currently $8 and will be raised to $9.
New customers will be charged the increased pricing immediately. Current subscribers will see the increases rolled out over the next three months. Netflix did not share exactly how it plans to roll out the increases, but users should expect to see a higher bill any day now.
These new prices are the highest the streaming services have ever cost, as well as the most substantial increase in the company's history. Although a couple of bucks a month may not seem like much, it does add up, and there is a good chance Netflix will receive backlash for the price hike.
This could cause a rise in cancellations, however. Then again with must-see original programming like Stranger Things, Chilling Adventures of Sabrina, GLOW, and Bird Box, Netflix customers might suck up the increases. Never underestimate the power a good TV show has on a person. Plus, people do not want to be left out in the cold when others are talking about a hit show.
Netflix: we are removing Friends— Hannah Zulk (@HannahZulk) January 16, 2019
Yall: NOO!! I NEED TO REWATCH IT FOR THE 100TH TIME!
Netflix: okay we paid 100 million to keep Friends, so we increased the price of our subscriptions
The reason behind the increase is simple. Netflix is continually investing in new and existing content, which does not come cheap. For the company to continue to offer an excellent entertainment experience for customers, it has to increase subscription prices. As more streaming services hit the market, original content is going to be imperative for Netflix to stay relevant.
Speculation is already brewing that in the next couple of years—with the additions of Apple. Disney, and AT&T entering the streaming platform—Netflix will continue to struggle. The company has already seen some financial issues over the last couple of years to provide top-notch content.
What do you think about the Netflix price increase? Will you pay it or cancel your subscription?