Netflix raising prices in the very near future
April 25, 2016
For most UWL students, it’s not uncommon to end your day with an episode or two of your favorite show on Netflix. However, as of May 2016, Netflix subscribers will begin seeing increases in their monthly bills.
In October 2015, Netflix announced plans to raise the monthly rates for subscribers. Starting next month and over the course of 2016, subscribers will be paying a $10 per month subscription fee.
But the good news is that if you’ve been an avid Netflix subscriber for a long time, it will be awhile before you begin to see a price increase in your monthly bill. Netflix said that the longer people have held their subscriptions, the longer they will have until they begin paying an increased rate.
“[Netflix] will roll out the price hike gradually over the course of 2016, a strategy it calls ‘un-grandfathering,’” CNN Money said in a statement on Tuesday.
The new plan will be at a rate of $10 per month, but Netflix plans to offer an $8 per month option as well that will allow customers to watch standard definition programs, but only one person can be watching something on the account at a time.
In addition, they will offer a $12 per month option that will allow four people to be viewing at the same time as well as videos in ultra-high-definition.
Netflix did say that they aren’t in any major, immediate need of the revenue that they will gain from these price increases, but this revenue will allow them to work on their licensing agreements and creating newer, better content for next year.
Netflix started out the 2016 year strong by announcing that they had reached 81.5 million monthly subscribers. The first quarter of 2016 was largely helped by shows such as “House of Cards,” “Fuller House” and Marvel’s “Daredevil”.
Although they expect a number of customers to unsubscribe, Netflix feels that they will maintain a majority of their customers, and those customers will continue to remain “partially because these members have been with us for a reasonable period already, and because our content continues to improve,” said Netflix.
Overall, a majority of UWL students didn’t seem to be phased by the price increase, and in fact, many said it wouldn’t cause them to cancel their subscriptions. With an average of nine hours per week spent watching Netflix by UWL students, many aren’t going to be discouraged from subscribing just because of a $2 increase.
Sophomore Rebecca Roble said, “The two dollar price increase won’t make me cancel my subscription. Although it’s kind of annoying that the prices are going up, I understand that sometimes that’s what companies have to do to produce better content to keep their customers coming back. It’s about being better than the competitor, and sometimes being better requires more money.”
Amazon has responded to Netflix’s price increases by now offering an $8.99 per month option for their Prime Instant Video, which was normally only offered with a $99 yearly Amazon Prime subscription.