Netflix will be raising monthly prices by $1 or $2. And although investors are happy, should you be?
The truth is that paying another couple of bucks per month for Netflix probably isn’t going to break the bank for you, but is it going to be worth it?
While Netflix hasn’t detailed specifics about what its customers will get thanks to the price increase, the company has said that it will improve service for its 48 million subscribers, according to Reuters.
What this price increase really means is that there will likely be better infrastructure for Netflix. Here’s what Netflix CEO Reed Hastings said:
“Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only. Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period. These changes will enable us to acquire more content and deliver an even better streaming experience.”
Of course, it’s hard for users to get behind a pay hike for Netflix unless they are going to see a big difference in the content that is available to them. This is why you should expect that you’ll see more original programming coming from Netflix. Hastings himself said that Netflix will be able to license much more content.
Perhaps this means that you will be able to sit down for a Netflix session without needing to endlessly scroll for hours until talking yourself into watching Home Alone for the twenty-seventh time.
Even though it can be difficult for companies to raise prices and come out unscathed, Netflix might have an easier time than most.
One reason why is because Netflix is already a pretty inexpensive service that gives most users quite a bit of value. Secondly, Netflix has set itself apart as perhaps the best go-to streaming movie or option available.
Think about it, you are definitely not going to Blockbuster any more, so there is no competition for Netflix there. Redbox provides some competition, but the Redbox streaming service isn’t nearly as robust as Netflix. Even apps for paid movie channels — like HBO Go — have received bad press for not working as well as Netflix.
So, if there were ever a time for Netflix to raise prices, perhaps now is the best time anyway.
What do you think about the Netflix price increase? Will it affect your subscription? Let us know in the comments.