![]() ![]() ![]() How much could Netflix lose? Let's do a quick analysis. Many subscribers will agree that streaming isn't worth the extra money at this time. It isn't that good." If you don't think a service is worth its price at the moment you're using it, that's a pretty bad sign. But without taking a beat, she said, "Oh, we can cancel streaming. She was coincidentally watching an old Diane Lane movie she found scouring the Netflix streaming library. Last night, when I got home from work I told my wife about the rate hike. In fact, this pricing change could easily cause a decline in Netflix's revenue. It may want additional revenue to acquire more licensing to stream more titles, but a big rate hike like this may do more harm than good. And in the first quarter its profit soared 28%. Moreover, its profits have been strong over the past couple of years. It recently increased its fees ( announced last November) by between 7% and 17%. The oddest part about this rate hike is that Netflix doesn't really need the money. If Netflix wants customers to pay a lot more for streaming, then it needs the quality of its service to better reflect its cost. Using my own Netflix queue as an example, just 3% of my selections are available by stream - and less than one-third of my queue's titles were released in 2010 or later. Although its streaming library has grown significantly over the past few years, a huge portion of desirable movie and television titles remain unavailable by stream. They're getting the same services they got before, but now Netflix is charging much more money for them.Ī time might come when it would make sense for Netflix to charge a significant premium for its streaming, but the service has not yet reached that point. That's a 60% increase! Now if Netflix was suddenly offering its entire library via stream or providing some other additional service, then customers might be able to stomach this rate hike. To continue to stream, you'll now have to pay $15.98. If you're on the one DVD-by-mail plan, then you currently pay $9.99 per month and enjoy streaming as part of the deal. As a result, the move will be interpreted by customers as a rate hike, not a move meant to provide them more flexibility. Instead, it will slightly decrease the cost of its by-mail service and will require customers who want to keep streaming as well to pay a significant premium. To accomplish that result, Netflix should have left the total price for by-mail plus streaming unchanged, but broke the two out and allowed customers to stop paying for one or the other. This new strategy by Netflix will not be perceived by consumers as a way to empower them to decide whether they need streaming or not. This move is misguided for at least seven reasons. While the concept of a la carte pricing for these services might be well-intentioned, the company's execution was not. Currently, anyone who subscribes by mail can stream at no additional cost. ![]() The company announced new pricing plans, through which it intends to break out the costs of streaming and by-mail services. ![]() “Our updated prices reflect the investment we have made in our service and catalogue and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry.If you're a Netflix disc-by-mail subscriber, then you got a very irritating e-mail yesterday. The streaming giant has said that the price changes will allow it to “continue investing in best in class UK productions” and “offer a wide variety of curated quality shows and films” to customers.Ĭonfirming the news in April, a Netflix spokesperson said: “We have always been focused on providing our members both quality and clear value for their membership. This change will come into affect immediately for new subscribers, whereas those with accounts already will have a 30 day grace period. TalkTV could go online-only with Sun TV rebrand after Piers Morgan moves to YouTube 12 February, 2024 Opinion | Bagpuss at 50: The show that revolutionised children's TV 12 February, 2024 One Day proves this is the era of the male romantic lead 12 February, 2024 When is the price rise happening?Īs of Friday 20 May, all Netflix subscriptions will go up in price. ![]()
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