Netflix Bumps Prices in the US After 2 Years
The hit streaming website, Netflix, is looking to increase its monthly fee for the first time after the company’s last efforts last 2 years ago. The streaming company has unveiled that the major price hike will be affecting two of its three of their major subscription plans.
Netflix is still revered to be the one of the cheapest streaming website or platform that provides original content and great TV shows. According to reports, the new price hikes are expected to hit current members until October 19 and experience it on the next billing cycle, while new subscribers will experience the price hike starting today.
Netflix Subscription Hike
Netflix is taking a whole new spin to squeeze a little bit more of cash from its subscribers and potential customers; this time around, the streaming platform has announced a total of 3 price changes on their current subscription options. The first one that was increased was with its mid-range plan, increasing by a total of $1 from the latter $9.99 to $10.99. This plan includes the ability to stream two devices at the same time.
The next subscription plan would be one of its top-tier plans, this plan
Netflix past Price Hikes
One of the fondest memories the whole market had when Netflix first announced a price hike on its subscription as last October of 2015, and it was a disappointment and it shook the market along with it. Why? The whole plan was to increase the subscription costs for new member and eventually “un-grandfathering” their current customers in the process.
The whole event caused such a ruckus and it even made CEO Reed Hastings mentioned on its earning call "People don't like price increases — we know that" The process had been a grueling experience for the company as they took a massive beating and advances with a missed quarter of subscriber growth that year.
Netflix Shares Up
On the brighter side, the market took the new price increase positively with the streaming platform’s shares bullish run today with a total of 4.5% increase hitting a record high of $192.80. An analyst from MKM Partners noted that “Most investors believe that Netflix is priced well below its value to consumers and want to see the management continue to increase monetization,”
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