Netflix is trying to squeeze a little bit more out of their U.S.-based customers by increasing the prices of two of its most popular services. According to CNN Money, the standard service, which allows members to stream shows and movies in high definition for up to two screens at once, is now priced at $10.99, an increase of one dollar. The premium service, which provides viewing on up to four screens (plus ultra HD viewing) is $13.99, a two-dollar increase. The basic service, which enables Netflix streaming on only one screen and doesn’t appear in HD, will remain the same price of $7.99.
The price increase will only affect new members and became active as of Thursday, October 5. Existing subscribers will keep their price, at least for now. From time to time, Netflix plans and pricing guidelines are adjusted as they add exclusive programs and new features. The improved features can significantly improve the user experience. The streaming service has found that members don’t mind paying a few more dollars for a more user-friendly experience.
According to a Netflix spokesperson, users will be notified of the new prices based on their billing cycle and will get a 30-day notice before the changes take effect. The spokesperson added that Netflix would begin to notify members of the change on October 19.
Netflix plans to spend $7 billion on content in 2018, up from $6 billion this year https://t.co/Cz2ttGom2k— MarketWatch (@MarketWatch) October 6, 2017
According to TV Guide, the increase comes as the streaming service puts more money into developing Netflix produced shows and movies. Netflix has committed almost $16 billion to streaming content deals with $6 billion spent in 2017.
In 2015, Netflix hiked the member rate for the standard HD plan to $9.99, a whole dollar increase from $8.99. The newest price hike is a 10 percent increase. Netflix is aware that subscribers may not like the price hike, but the company assures customers the reason for the price increase is to provide more exclusive content.
Netflix has increased their prices 60 percent since 2011. In 2011, they offered a DVD and streaming service for under $10. Several years ago, they separated the plans and nearly doubled the price.
Are you surprised that Netflix increased the price of the streaming service? Will they lose customers over the price hike? Share your opinion in the comments section below.
[Featured Image by Pascal Le Segretain/Getty Images]