We all knew that sooner or later, Netflix was going to significantly increase the prices of their subscription plans, making some customers question their decision to stick with the streaming service. And, yep, now it’s happening.
The Associated Press reports that for the second time in 15 months, Netflix will be increasing its prices, but this time, by as much as 18 percent. These changes will affect subscribers from the U.S., Latin America, Mexico and Brazil, appearing in their bank statements in the coming months. Netflix newcomers will now have to sign up to these new prices.
Netflix’s cheapest plan, which gives users access to one screen, will now cost $8.99 a month, while other plans that allow for multiple viewing and HD capabilities will cost $12.99 and $15.99 respectively.
Different sources speculate that this hike in prices is Netflix’s way of offsetting their mounting costs due to the large amount of content that they’re producing on a yearly basis. The company itself issued the following statement: “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience.”
Although a dollar or two doesn’t sound like a lot, Netflix has over 58 million subscribers, so it definitely will help them manage their costs and much discussed debts. Elevated prices will also give other streaming services like Hulu, Amazon Prime, HBO Go and Disney’s upcoming mystery plan a small opening that they could try to spin in their favor.
While Netflix is still seen as the “it” streaming service, other businesses are faring very well with their own original content and capabilities for add-on services. Those customers who’ve decided that they’ve had enough of Netflix now have several options that can more than make up for the loss of the streaming giant.