Netflix single-handedly revolutionised how we watch television and is an integral part of our lives. Today, the company is raising its U.S. prices by 13 to 17% per cent, the most significant increase since the company launched its video streaming service 12 years ago. Unlike previous price hikes, this one applies to all three plans that the streaming service offers.
Its most popular plan will see the largest hike, to $13 per month from $11. The plan offers high-definition streaming on up to two different internet-connected devices simultaneously. The price of the cheapest plan is going up from $8 to $9 per month. Their best plan that offers ultra-high definition quality streaming will jump from $14 a month to $16.
The new prices are already in effect and will roll out to existing customers in the next three months. Customers in countries where Netflix bills in U.S. currency will also be affected, except for key markets such as Mexico and Brazil.
Netflix has invested a significant amount of money in original content, which has resulted in hits such as “House of Cards,” ″Orange Is The New Black,” ″Stranger Things,” ″Bojack Horseman” and, most recently, the film “Bird Box.” The extra capital will go a long way in recovering the investments and pay back some of the debt it has assumed to ward off rivals such as Amazon.
The video streaming market is a hotly contested one, and it’ll get worse after the likes of Disney and Apple join the fray. Netflix needs more capital to keep up with its competition, and a price rise may be one way of going about it. The company burned an estimated $3 billion last year, and an equal amount is expected to be spent this year.
Netflix faced a huge backlash in 2011 when it unbundled video streaming from its DVD-by-mail service. The company lost about 600,000 subscribers at the time. There will no doubt be some cancellations due to the increased price, but that should be more than accounted for by existing subscribers.
The post Netflix Is Raising Prices on All Streaming Plans in the US by Anil Ganti appeared first on Wccftech.
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