In an effort to invest more in their own original products, streaming service, Netflix, will be raising their subscription prices. Over 58 million people stream content from Netflix on a daily basis. However, with competing services like Hulu, Amazon, and this year’s Disney+ is this the wisest choice? Let’s look at the facts:
All three of the company’s plans will increase in price by $1-$2. The standard $11 plan, for example, will increase to $13 per month.
The price hikes will be applied to all existing members over the next few months. New members will be charged the new price immediately. Its $8 plan will go up to $9 and it’s $14 plan will go up to $16 a month.
Netflix has been spending billions on new content — at least $8 billion last year, based on the company’s own expectations from 2017. The streaming service also announced in October that it planned to take on $2 billion in new debt.
The new price hike could help keep investors happy, said Tuna Amobi, a media analyst at CFRA research.
So it’s not going to break the bank for most middle class families, but it might cause them to discontinue smaller streaming services such as Shudder or DC Universe.
The coming months will tell if the increase is a good thing or not. WarnerMedia is another possible big time competitor on the horizon. One thing is for sure, Netflix reigns supreme for now, but for how long?