By that time, investors hope Netflix is an inexpungible staple in people's homes, much like cable TV has been for the last four decades.Įarly evidence suggests Netflix is on the right track. But Wall Street is counting on consistent price increases as customer growth wanes. The video streamer has largely been able to avoid significant price hikes because it has consistently added subscribers, giving investors a clear growth story. Netflix's last price increase was January 2019. It's why Netflix has a market valuation of $218 billion on just $2.8 billion of net income in the last 12 months. The company's decision to raise its standard plan by $1 per month, from $12.99 to $13.99, and its premium plan by $2 per month, from $15.99 to $17.99, is an essential part of Netflix's long-term strategy. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower That all costs money, and, sadly, we're the ones who are going to have to pick up the tab.Best Debt Consolidation Loans for Bad Credit ![]() The hunt for content that appeals cross-generation and cross-genre continues – while the investment in gaming sees Netflix understanding it needs to diversify its revenue streams if its to remain competitive at a business level. We may want to watch The Office or Friends again an again, but Netflix does not own this content, and thus has to pay for it to keep those eyeballs on its app. While its initial content push was around building the credibility of the service in industry circles, picking up films from auteur directors and commissioning premium TV series, the streaming market is becoming more competitive, and Netflix is increasingly having to try to find not just the next big hit, but potentially even a show that proves to be an evergreen hit. With broadcasters and studios increasingly withdrawing their back catalogues from Netflix as they focus on their own in-house streaming services like Hulu and HBO Max, Netflix have to make more and more movies and shows to keep subscribers. Netflix has big, big plans.Īs well as branching out into gaming, the streamer is also under pressure to deliver more and more content. (Image credit: Netflix) Why is Netflix increasing its subscription price?Ī combination of factors. We offer a range of plans so members can choose a price that works best for them.”īridgerton, a lavish Netflix drama with big costs. Our updated prices reflect the investment we have made in our service and catalogue and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry. What's behind the price increase?Įxplaining its decision, a spokesman for the streamer told Deadline: “We have always been focused on providing our members both quality and clear value for their membership. ![]() The top level Premium tier, which widens availability and quality to four screens streaming Ultra HD 4K television at once, rose from $17.99 to $19.99 a month. The Standard Plan, offering two simultaneous HD streams now sits at $15.49 a month, up from $13.99. ![]() In the States, Basic Plan customers now pay $9.99 a month (up from $8.99). This follows similar price lifts in the US at the start of the year. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Get the hottest deals available in your inbox plus news, reviews, opinion, analysis and more from the TechRadar team. Get daily insight, inspiration and deals in your inbox
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