So this one is hot off the press. We all know Netflix is one of the biggest streaming services of all-time. But this morning, they made quite the announcement. Breaking news: Netflix raises it’s prices.
So these prices go up for the first time since 2010. From now on, the cheapest plan will cost you $9 (it’s officially $8.99 a month, but who are we kidding, here?). That’s the basic plan that used to cost $8 a month ($7.99, but even a 3rd grader can round that off). That’s for one device. But the most popular plan is the two device plan. If that’s you, then expect your Netflix bill to go up to $13 a month. That’s up slightly from $11 a month. A four device plan will now run you $16 a month.
So why is Netflix doing this? For starters, they’re looking over their shoulders at the competition. In order to compete, they need to keep investing in original programming. And like any IT service, or any business, they have to pass that cost on to the consumer. Then add companies like ABC/Disney, NBC/Universal, will be starting their own streaming services. That means they’ll be less generous with their original programming. Of course, they’re competing with Hulu as well. Me and my computer repair colleagues often argue which one is better: Hulu or Netflix? I always say Netflix.
Netflix raises it’s prices, but how are people responding? The stock market responds very well. Because today, Netflix stocks are rising over 6%. Personally, I like how Netflix does this. Yes, they raised their prices. But they have to cover their cost in order to get better. However, they didn’t double the prices, or were ridiculous with raising prices. They know that will turn fans off. And with so much competition, they don’t want to do that. That’s why this Netflix move is so genius. Do you think so?