Netflix announces plans to raise the cost for its 2-device subscription service for new subscribers, but existing users will pay their current price until next year.
Netflix has announced plans to raise the cost of its standard 2-device video streaming service by $1, bringing the cost from $8.99 per month to $9.99 per month. The price change will go into effect immediately for new subscribers, but will not impact current subscribers until October 2016. The other two Netflix subscription packages - the basic service and the family plan - will remain at their $7.99 and $11.99 prices, respectively.
Regarding the price increase, a spokesperson for Netflix released this statement:
"To continue adding more TV shows and movies including many Netflix original titles, we are modestly raising the price for some new members in the U.S., Canada, and Latin America. As a thank you to existing Netflix members—who aren’t already benefiting from a previous price guarantee—we will maintain their current price for a year."
Ever since the last console generation, Netflix has been an integral part of the gaming ecosystem for many players. Many can relate to the experience of plopping on the couch, playing a game for awhile, and then relaxing with a few hours of Netflix streaming before bed. Considering how ingrained Netflix is in the game console experience now, and in our popular culture in general, it's highly unlikely that the $1 price increase will see many people, if any, drop the service.
Furthermore, Netflix says that they will be using the additional revenue to add even more content to the service, which, if they deliver, seems like a fair trade-off. However, this statement does stand at odds with a recent decision the company made to drop their contract with the cable channel Epix, which has resulted in numerous high profile films being removed from the service, including The Hunger Games: Catching Fire, World War Z, and others.
It seems like the streaming giant is primarily focused on producing their own original movie content for the service, and would rather have their content not compete with the bigger name flicks. Raising the subscription price as they are doing could go a long way in funding more of these Netflix original films and television shows, and as long as they maintain high quality, it's hard to complain.
Beyond having more cash to create original television and movie programs, the subscription price increase could also help fund more gaming-related Netflix ventures. Remember, there was once a time when the company planned to offer video game disc rentals, but ultimately those plans fell through when their Qwikster spinoff service bombed. Taking into account how synonymous Netflix has become with gaming consoles and gaming in general since then, now may be an apt time to revisit those plans.
Or maybe Netflix could be even more ambitious, and launch a video game instant streaming service to rival their own television and film streaming service. There have been rumblings that EA is in the market to make "Netflix for video games", so if Netflix eventually wants to provide such a service, they had better work to beat EA to the punch.
What are your thoughts on Netflix's decision to raise the price of their subscription service from $8.99 to $9.99? Do you think the new price is fair? Let us know your thoughts about Netflix's rise in price in the comments below.
Source: Wired