Netflix raising prices on two subscription tiers

October 06 10:41 2017

Netflix still offers a subscription plan for $7.99 a month, but that only allows for streaming on one connected device at a time and doesn’t support HD streaming.

Those who have gone for the 4S option will have to pay an extra €2 as the price is going up to €13.99.

The streaming video market is ripe with competition.

Netflix has quickly become a major player on the television scene, which is no small feat considering the company technically isn’t even on television. The company expects to spend almost $7 billion on content for its service next year, including movies, TV series and comedy specials.

Shares of Netflix hit a new all-time high on news of the price hikes, climbing more than 4% and peaking at $192.80 per share in Thursday morning trading. Netflix said the price change will “roll out to members over the course of the next several months”.

The question is whether there’s an upper limit to this number. In the long run, this may not be much of a big deal for most consumers, even if it adds up over time.

Some may hope that consumers add more and more paid streaming services to their lineup, but undermining that idea is the cord-cutter’s dilemma.

The company is raising the prices on its standard and premium streaming subscription services.

Now that every streamer makes its own originals, Netflix is in a race to keep up with the likes of YouTube, Hulu, and Amazon. As Netflix expands into original content, its operational costs increase as well and, eventually, some of those costs will be passed onto Netflix’s customers. Said phone in question was none other than the LG G6, of course, just as Netflix promised back in March.

Clinton

Netflix raising prices on two subscription tiers
 
 
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