Why Does Netflix Keep Raising Prices?
Netflix is raising its prices … again.
Thankfully, unlike some of the competition, the streaming giant never raises its subscription fee by very much. That’s pretty surprising considering just how popular Netflix has become.
Not to mention, the media provider does a fantastic job of providing a wide variety of quality content. While many subscribers have no issue with Netflix upping the subscription fee, others can’t help but ask, “Why”?
What will a Netflix subscription cost?
So, what will your Netflix bill look like next month? If you have their standard plan, the one that offers two high-definition streams, you’ll be paying $12.99 a month. That’s just a $2 increase from the current standard price of $10.99. If you have their four ultra high-definition streams via their premium plan than you will be going from $13.99 to $15.99 a month.
If you happen to be a minimalist and rock the basic plan you will be experiencing your first increase ever! Unlike the other two plans, your increase will only be $1, taking you to $8.99 a month.
What were Netflix’s past price hikes like?
The last time Netflix raised their prices was in October 2017. At the time their basic plan was the usual $7.99, their standard plan was $9.99, and their premium plan was $11.99. When Netflix pushed the new prices, the standard plan only increases by $1 while the premium plan went up $2.
Exactly two years before the 2017 increase, Netflix pushed another update in their subscription fee. At the time there was just the basic plan (which was, of course, $7.99) and the standard plan which was $7.99.
Based on these updates it looks like Netflix has been following a subscriber-friendly trend for their increases. Even if the fee has gone up quite a few dollars from 2015, it’s still pretty reasonable!
Why is Netflix raising the subscription fee?
It’s no secret. Netflix has a singular goal, to offer more content. This means acquiring rights as well as producing their own shows and movies. Neither route is cheap! Just take a look at how much Netflix has dropped on some of its infamous original series. With Netflix aiming to increase quality as well as quantity, budgets for original movies and series are only going to go up!
Netflix has also commented directly on its updated subscription fee. The streaming giant issued a statement saying they were upping their extremely affordable prices to “continue investing in great entertainment and improving the overall Netflix experience.”
Ultimately, Netflix feels like a $1 or $2 hike won’t offend their subscribers but a quick look through Twitter shows a lot of unhappy customers and tons of people selling off their accounts.
How does Netflix stack up against its competitors?
While Netflix’s $15.99 premium charge seems reasonable, it’s overkill for some customers. For others, they think it’s definitely worth it given Netflix’s massive library. But, what about the competition? Are they cheap enough to sway consumers to their side?
- Netflix’s $12.99 standard plan will be $1 more than Hulu’s ad-free option which is currently $11.99.
- Like Disney? Their niche streaming service completely undercuts every Netflix option with a $6.99 subscription fee.
- Showtimes $10.99 streaming service is cheaper than both Netflix’s standard and premium plans.
- HBO Now is $14.99, more than standard but $1 cheaper than Netflix’s premium membership.
While Netflix is in a stiff battle with other streaming services, it’s still a frugal option when comparing it to popular cable providers. For instance, DIRECTV will cost you anywhere between $35 and $110 a month depending on your plan! Even their cheapest option is more than double Netflix’s fee! Verizon FiOS low-end offer is $64.99 and Spectrum comes in at $44.99. No matter how you look at it, Netflix is a great alternative to standard TV at the very least!