News

Netflix to Increase Prices For 37 Percent of US Customers

Netflix has rapidly become a legitimate rival to traditional Television broadcasts and revolutionized the way we all watch video content. Instead of having to view your favourite programmes based on their pre-arranged listings, you can instantly access a huge library without adverts. Furthermore, exclusive programming such as House of Cards showcases the quality content, and value when subscribing to Netflix’s service. While there is competition from Amazon Instant Video, Hulu and others, none of these really compared to Netflix’s ability to offer a massive range of blockbuster films.

Unfortunately, price increases have been occurring on a regular basis which might deter some users from continuing their subscription. Furthermore, the company recently clamped down on users accessing the US library with a DNS or VPN. Annoyingly, consumers outside of the US often have to put up with a fairly restricted selection of TV shows which is down to licensing agreements. Once again, this is another reason why certain long-term subscribers might feel inclined to cancel.

Some time ago, Netflix announced that they would be increasing prices gradually and freeze the cost for current users for a limited time. The ‘grandfathering’ period has now expired which means that almost 17 million US subscribers protected by this scheme will face a price increase from $7.99 a month to $9.99. This follows a 50p price hike in the UK and it looks likely that the company will continue with this strategy especially for those purchasing the HD tier. Of course, acquiring the broadcasting rights to expensive programming is bound to cut into Netflix’s profit margins. It’s clear they want to offer the best possible library and form the new instant form of Television.

However, if the prices continue to rise and eventually cost more than a cable service, I’m not sure how many subscribers they will lose. In the USA, I don’t think it’s likely, but disgruntled customers outside of the US market might feel they’re receiving poor value due to the smaller library while paying a similar price.

John Williamson

Disqus Comments Loading...

Recent Posts

Nvidia’s GeForce RTX 5090 Possible Price Revealed

According to a new report, the GeForce RTX 5090 GPU will be very expensive. It…

8 hours ago

AMD Krackan Processor with 6 Zen 5 and Zen 5c Cores for Budget AI Laptops Leaked

A new AMD processor in the form of an engineering model has been leaked in…

8 hours ago

SK Hynix Begins Production of First 321-Layer NAND Chips

SK Hynix has claimed to be the first company to mass-produce 321-layer NAND memory chips.…

8 hours ago

Trust Gaming GXT 609 Zoxa 2.0 PC Speakers

SOUNDS GREAT – Full stereo sound (12W peak power) gives your setup a booming audio…

12 hours ago

PowerA Wired Controller for Nintendo Switch

Special Edition Yoshi design Ergonomic controller shape with Nintendo Switch button layout Detachable 10ft (3m)…

12 hours ago

Logitech G Saitek PRO Flight Rudder Pedals

Fluid Motion: These flight rudder pedals are smooth and accurate that enable precise control over…

12 hours ago