Netflix offers three levels of streaming packages for customers to pick from basic, standard, and premium. All levels will allow viewers to watch and access all of Netflix's original TV and movie content as well as the entire library available in their country.
The basic plan allows for one screen viewing at a time and will rise from $8/month to $9/month. The premium plan offers ultra high definition that can be watched on up to four screens at a time and will now be $16/month as opposed to $14/month. It's not a lot of money many people will even notice missing from their checking accounts, but it's worth noting. New prices will be effective immediately to new customers and rolled out in the next few months to existing customers.
According to the Associated Press, Netflix has 79 million subscribers outside of the U.S. alone and customers in 40 Latin American countries pay their bills in U.S. dollars. This increase will affect them more.
As to be expected, raising prices tends to make people mad and some will cancel their services over this. During their last price hike in 2011, they lost 600,000 subscribers in the U.S.
The streaming empire certainly isn't hurting for money or subscriptions but the price hike is probably a direct result of all the new original content Netflix rolls out every single month. They also have to pay for royalty rights for your favorite shows. They did just pay $100 million to keep Friends in their library for a few more years.
Their production costs have to be rising and their quality of special effects and star power have to be taking a toll on their budget too. Some of the best shows in the past few years are on Netflix. Stranger Things, The Crown, The Kominsky Method, Orange is the New Black and Black Mirror are just a few of their award-winning successes. Plus, we've all seen superstar Sandra Bullock in Bird Box proving that Netflix is a big entertainment contender.
People don't want to pay more for anything and if there are more little increase over the years, that can all add up. What do you think of this increased fee? Still worth it or just the beginning of more raises? Let us know your Netflix opinion in the comments!