Starting this month, streaming giant Netflix has begun discreetly initiating price increases. According to initial reports by Mashable, these hikes primarily affect subscribers in selected countries, including the United States.
Netflix’s pricing structure, consisting of three tiers, will see changes to its most popular $9.99 plan. Previously, this high-definition (HD) plan was available for just $9.99, allowing users to stream content on two devices simultaneously. The plan’s price tag has seen a rise of one dollar, making it a flat $10.99.
The Netflix pricing structure consists firstly of $7.99 per month, which affords you low-definition streaming on a single screen. Secondly, the previously mentioned popular HD plan for $9.99 (now $10.99) offering high-definition streaming across two devices. Lastly, the premium $11.99 plan, that offers users the ability to stream 4K content on four devices, now retails at $13.99. This represents a 16 percent increase, a hefty jump in cost for the high-quality streaming service.
4K streaming is still finding its customer base, yet with the increasing ubiquity of 4K enabled TVs and fast broadband services, it’s expected that a growing number of the 140 million Netflix subscribers worldwide will be migrating towards the platform’s pricier option.
Additionally, subscribers in France have noticed a corresponding €1 increase in their subscription rates. However, the hike seems unlikely to deter a base committed to Netflix’s catalogue. The streaming service boasts some of the most compelling content globally and has committed an astounding $6 billion this year into the production of original content. Furthermore, experts posit that Netflix’s content budget could potentially escalate to $8 billion in the following year, further signaling the company’s aggressive expansion plans. This prediction is supported by recent news of Shonda Rhimes, esteemed American TV producer behind hits like ‘Scandal,’ ‘Grey’s Anatomy’ and ‘How to Get Away with Murder’, opting to bring her content exclusively to Netflix.
For subscribers residing in affected countries that will see their bills increase, they can expect official notification from October 19th. Whether these price tweaks will impact Netflix’s growth trajectory remains to be seen.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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