Netflix Raises Its Prices As Their Stocks Hit All-Time High
For people nowadays, local television networks are simply boring, that is why almost every household in the United States have Netflix. It is basically a streaming media that distributes movies and television series. They also offer video-on-demand online as well as DVD by mail, they also distribute online. Netflix has got to be the most popular streaming media nowadays, which is why a the phrase, “Netflix and Chill”, became a thing especially to millennials.
Some of the most popular series by Netflix that became known not just in the U.S. but also the entire world are, Stranger Things, 13 Reasons Why, Orange Is The New Black and more. However, Netflix just announced that they will be raising their prices for their U.S. customers, which definitely disappointed most of the American consumers.
NETFLIX ON RAISING PRICES
According to the statement released by America’s biggest media streaming service, their basic plan will remain at $7.99/month, however, their standard plan that used to only be $9.99/month, will now cost $10.99/month. Then their premium plan will rise from $11.99/month to $13.99/month. The users will be notified of the new pricing list which will then be based on their billing cycle. The Netflix spokesperson also said that users will get 30 days notice before their changes takes effect.
“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience,” Netflix said in a statement.
These prices are now already in effect for those who are signing up now, but for the existent subscribers, they will feel the change next month. Experts believe that this may be a little too bold for Netflix to do especially with their greatest competitors Apple and Viacom, who are currently trying to ace their games to be at the top. Especially now that they are introducing the extremely advanced video quality for internet-based television programming, the high dynamic range and 4K Ultra High Definition.
According to the senior analyst at Parks Associate, Glenn Homer, people may be willing to pay for more than one streaming video service. “2017 was really the first time we’ve seen the percentage of households subscribing to two or more services outnumbering the households subscribing to only a single service.”
There is no news whether they will also increase prices on other countries in the near future.
A typical American household is willingly to pay up to $100 a month on television, which is probably the reason why Netflix is raising its prices because they are trying to capture as much as of that $100 as they can.
STOCKS IMMEDIATELY ROSE
After the announcement has been made, Netflix is said to be up to almost its 90 percent on the year. One particular investor, Paul Holland, said that Foundation Capital has indeed invested in hundreds of companies, then again, Netflix has managed to exceed the value of the other companies combined. One of the reasons is that Netflix has this unusual ability to avoid trial and error when it comes o advertising unlike Facebook, Apple, and Google. “It’s a subscription service, its pure heroin. It s money coming directly to the company.”
There are of course other streaming services to subscribe to except for Netflix. Just like Amazon Channels, it is basically where Amazon Prime members may actually use their payment system to be able to access HBO, Showtime, PBS, and many other programming where users could actually get one by one or by a la Carter basis.
There is also Hulu, which provides more than 3,000 original series and movies, as well as catching up on episodes from FOX, NBC, and ABC, it is a little cheaper compared to Netflix. However, you may only watch on one screen at a time, which is such a huge drawback.
If you are willing to pay for more, then you may want to check out YouTube TV. For $35/month, you may enjoy up to 40 live television networks, but unfortunately, you must make sure that your area is covered by it since it is only available on 49 cities in the entire United States.
However, the number of streaming services that people actually subscribe to may now be limited because of the same economic constraints that may have pushed some audiences to pushing themselves to cut the cord.
It is very important for you as a consumer to know the which streaming service is best for you, as well as which plan works for your convenience. This is to make sure that you are not just throwing away a money and that you’re actually making the most out of your subscription.
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