Who knows anyone who doesn't have or never has had a Netflix account? Netflix is almost as popular as the internet itself, and dare I say it, is as essential as tap water for some people. There's nothing like binge-watching your favorite show on Netflix on a lazy Saturday.
However, you will have to spend a little more for your Netflix marathon runs soon.
Netflix price hike
Netflix announced that it is hiking the price of its most popular U.S. streaming plan by 10 percent in November. Subscribers of the Standard plan will soon pay $10.99 a month, a dollar more than its old rate of $9.99.
The Standard plan is the most popular plan for a reason - it allows subscribers to watch HD quality streams on two devices simultaneously, perfect for most families in the U.S.
The Premium plan that allows for 4K streaming is also getting a price hike and it's even steeper. Premium subscribers will have to start shelling out $13.99 a month for 4K, two dollars more than its current rate of $11.99.
The Basic plan will remain at $7.99. This may sound like a good value but it's actually not. Why? HD streams are not available through this tier and you are only limited to one stream at a time.
Why the price hike?
The last time Netflix introduced a price hike was in 2014. That increase was rolled out slowly, raising prices for new members to $8.99 while existing subscribers retained the $7.99 price point until 2016.
Then in 2016, the streaming giant gradually increased the Standard plan to $9.99 for all its subscribers.
With next month's price increase, there won't be slow rollouts. The price change will affect all Standard and Premium tier subscribers by December, depending on their billing cycles.
Why the need for a price increase? According to an official statement:
"From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster."
With Disney leaving Netflix soon and other streaming services like Amazon and Hulu competing for the same movies and TV show agreements, Netflix's strategy is clear - it needs to boost its earnings so it can produce more original in-house content.
And producing original shows and movies while acquiring other content is not cheap. Netflix is expected to spend around $6 billion for content next year and to offset that, it needs to generate the capital somewhere.
We will have to wait and see if there will be consumer backlash after the price hike.
However, if Netflix keeps producing must-see quality shows like "House of Cards," "Stranger Things" and "Daredevil" then penny-pinching subscribers will more than likely just return to service begrudgingly with an extra dollar in hand.
What do you think? Is the Netflix price hike acceptable? Drop us a comment!
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