Hollywood, MD- The last price hike from Netflix came in 2017. Earlier this week they announced another hike of 13 to 18 percent. This will be the biggest increase in the online TV/Movie subscription service in its 12 year history.
To put it in perspective, Netflix’s most popular plan, the standard plan went from $11.00 a month to $13.00 a month. Previously, Netflix had offered a basic plan for $8 a month, but has raised that to $8.99.
These new prices are in effect for new customers, and will begin rolling to existing customers over the next three months. Customers in 40 Latin America countries where Netflix bills in US currency will also be affected, expecting key international markets such as Mexico and Brazil.
Netflix has almost 79 million subscribers outside of the US as of September 2018., while just about 58 million in the US.
While subscribers bemoaned the price hike announcement, Wall Street cheered it, sending Netflix’s shares up 6.5% on Tuesday.
The extra cash will help Netflix’s huge investment in original shows, films, and finance heavy debt it assumed to ward off rivals such as Amazon, Disney, and AT&T.
There is a worry that the higher prices could alienate some subscribers and trigger a wave of cancellations. Netflix faced a huge backlash in 2011 when it unbundled its video streaming service from its older DVD-by-mail service. They lost about 2%- 600,000, subscribers after the switch.
“This is a more aggressive move than (investors) were expecting,” said Moody’s analyst Neil Begley. : It shows Netflix is pretty confident that it still has some pricing power in the U.S.”
Contact David Higgins at email@example.com
The Southern Maryland Chronicle is a local, small business entrusted to provide factual, unbiased reporting to the Southern Maryland Community. While we look to local businesses for advertising, we hope to keep that cost as low as possible in order to attract even the smallest of local businesses and help them get out to the public. We must also be able to pay employees(part-time and full-time), along with equipment, and website related things. We never want to make the Chronicle a “pay-wall” style news site.
To that end, we are looking to the community to offer donations. Whether it’s a one-time donation or you set up a reoccurring monthly donation. It is all appreciated. All donations at this time will be going to furthering the Chronicle through hiring individuals that have the same goals of providing fair, and unbiased news to the community. For now, donations will be going to a business PayPal account I have set-up for the Southern Maryland Chronicle, KDC Designs. All business transactions currently occur within this PayPal account. If you have any questions regarding this you can email me at firstname.lastname@example.org
Thank you for all of your support and I hope to continue bringing Southern Maryland the best news possible for a very long time. — David M. Higgins II