CNN Money is reporting that Netflix is planning on increasing the price of its subscription service to new subscribers only (by $1-$2). Existing subscribers will still be able to enjoy the $7.99 pricing they’re currently on (for a generous amount of time) which means we’ll all be paying more in due time.
“If we want to continue to expand, to do more great original content… we have to eventually increase prices a little bit,” Netflix’s Reed Hastings said in a Monday conference call. “We’re building this ecosystem together that’s about Internet video,” Hastings said.
“The more players there are in Internet video, the bigger that ecosystem gets…. and we’re all participating in that transformation.”
This really comes as no surprise, as a service grows so does it’s needs and other expenses. Amazon already raised the price of its Prime service and no one seemed to bat an eye. And why is that? Because the service is worth it. I think a $1-$2 increase by Netflix is more than fair for a service that’s been a staple in many homes for several years now. Consumers don’t always like to pay more for services but Netflix is one of those rare services I think will not get too much backlash over a price increase. And of course you now have the ISP’s battling with Netflix over users that exclusively stream content, which they claim, puts some strain on their networks. The upcoming merger of Time Warner and Comcast isn’t something Hastings is wild about.
“Comcast is already dominant enough to be able to capture unprecedented fees from… services such as Netflix,” Wells and Hastings wrote. “The combined company would possess even more anti-competitive leverage.”
The future of television is streaming in my humble opinion. I for one am OK with paying an extra buck or two to continue to get great service from Netflix. What do you guys think? Let us know in the comments below or on Google+, Facebook and Twitter.
Source: CNN Money