It just became a little more expensive to “Netflix and chill.” The company has been famously known as the cheap alternative to cable. However, the price of Netflix is going to be increasing for anyone who was grandfathered into the original $7.99 per month plan. Those Netflix users will now pay $10 per month after May 9.
Netflix is not only a cheap alternative to cable, but a huge part of the pop-culture for most young adults. People are hearing less about going out to the movies and more about staying home to watch Netflix. The convenience factor is pretty much unbeatable.
The majority of all Netflix users are college students. Nine out of 10 college students use Netflix in the United States. People from the ages of 18 to 29 binge watch the most, so this price increase will effect them as a whole if they were originally “grandfathered-in.” 68 percent of students binge watch shows using Netflix on campuses across the country.
“Binge watching” has taken the world by storm. Many television viewers are tired of waiting for their favorite show to air every week. Most viewers would rather use Netflix and watch the entire show all at at once at their convenience.
With Netflix, people can watch a large selection of popular television shows as they please. There is no such thing as recording the show to watch it later, it is always there waiting. These advantages have led to a decrease in the number of Americans who use cable.
A study conducted by eMarketer (via BGR) shows that 23 percent of homes in America won’t have any sort of cable service by 2019. Cable providers not only have Netflix to worry about, but other digital providers are on the rise as well. Hulu and Amazon Prime are also growing in popularity.
Netflix is in the business of creating their own wildly popular television shows such as House Of Cards. Marvel has also partnered with Netflix in the creation of shows like Daredevil, The Defenders, and Jessica Jones. Daredevil is gaining some momentum as one of the more popular television shows on Netflix.
Netflix is planning on adding to their arsenal of Marvel television shows. Luke Cage and Iron Fist are currently in development. There is supposedly a tie between the Luke Cage and Captain America: Civil War which should increase the number of Netflix users despite the service’s increase in price.
The more original productions Netflix has to offer, the more their price may slowly increase. If their shows become popular enough, people may not care to pay a little more to watch their favorite shows. After all, binge watching does become highly addicting due to cliffhangers.
Eventually, Netflix may use this to their advantage given the fact that their original shows are not available anywhere else. It is a strong possibility that Netflix will be less inclined to add any new television series or movies to their library if their own productions become more popular.
Business Insider reported that three to four percent of subscribers effected by the price increase will cancel their Netflix subscriptions. Around 17 million subscribers are going to be affected by the increase. Most subscribers being affected don’t even know that the Netflix price is going up.
There has been a recent controversy over the issue among Netflix users on social media. Many are claiming that they were not notified of the change.
A study conducted by Statista shows that Netflix has a total of 74 million subscribers. Netflix could easily brush off the cancellations due to the fact that it won’t hurt them in the long run. Netflix is still a dominant form of entertainment in American homes.
[Image via Netflix]