Netflix raises prices on standard and premium plans
Netflix raises prices on standard and premium plans
Netflix is raising its prices for US subscribers
08 October, 2017, 01:06
Historically past price increases have sometimes resulted in a proportion of existing users choosing to downgrade, which might at least make ISPs happy because that tends to reduce the bandwidth demands of their customers.
The price increases come after Netflix this year already raised prices in Australia, Brazil and Canada.
"We would expect mgmt. would be unlikely to implement such a price increase if USA subscriber trends were disappointing, bolstering our confidence further".
A premium plan, which allows subscribers to view programmes on four different screens simultaneously and watch in HD and 4K where available, now costs £9.99 rather than £8.99.
If you're one of the many millions of people in the United States who subscribe to Netflix, you might want to pay attention. If Netflix ups its price by £1 every 6-12 months then it might start seeing something of a backlash.
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Netflix is among the biggest global players when it comes to online streaming content. Netflix will begin notifying members of the change on October 19. In August, Ted Sarandos, Netflix's chief content officer, told Variety that the company planned to spend about $7 billion for original programming next year.
The company's mid-range plan, which allows streaming on two devices at the same time, was increased to US$10.99 per month from US$9.99.
"I expect both competitors to exploit the fact that they are cheaper, and expect households below median income to notice", Pachter said. "We think that Netflix is destined to be a cash-burning, high-growth company until it changes its strategy and accepts its fate as a highly profitable slow-growth company".
Investors approved of Netflix's move to boost its revenue, and sent the company's shares up 5.4 percent, to close Thursday at $194.39.
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