Last time Netflix tried to raise their monthly rate, the company took it on the chin, hemorrhaging customers and taking a stock nose dive. This time they are being a little more cautious.
The company plans to raise streaming prices for the first time in nearly four years, with new members paying $1 or $2 more a month for the service, or as much as $10.
Netflix’s current plan includes all-you-can-eat movies and television shows for $7.99 a month. Existing customers will continue to pay the current prices for “a generous time period,” the company said.
BOOOO!
‘Existing customers will continue to pay the current prices for “a generous time period,” the company said.’
But really, Netflix was surviving on paying really low licensing fees for older content. If you want premium content, you need to pay for it. None of this should surprise anyone.
I don’t like feeling as if I’m paying for their stupid deal with Comcast.
I’m sure that’s part of it. Blame the government for not enforcing net neutrality.
The other part is that Netflix has premium exclusive content and probably wants to create even more. If I can get more House of Cards quality shows I’ll gladly pay another buck or two a month.
Is their deal anything more than the standard fees that any other CDN pays? Just curious, I don’t know.
I do blame the government for that.
Also, a couple bucks more isn’t that bad now, it just sets a bad precedent($2 now+ $2 later + $2 later +$2 later = double what we were paying). The new shows are meant to bring in more customers which means more money for more shows etc.
Maybe I’m just being cheap, but with Netflix raising prices then the ISPs enforcing caps & charging more for more bandwidth it’s eventually going to be expensive, instead of a bargain.
Netflix won’t need retention if they’re losing money because they’re not charging enough to pay for licensing and the server farms…
The idea that Netflix can’t ever charge more to the existing customer base would kill them – as gjgustav points out – just as dead as losing half that customer base.
(Also, do you actually use enough data to “use” that unlimited plan?
I had one, and willingly gave it up for other benefits when I realized I never used over a gig a month.
“But I might need it someday!” is pretty illusory compared to real, immediate benefits. YMMV.)
AFAIK it isn’t.
“Net neutrality” is a red herring here, as always.