Starting today, subscribers of Netflix, the popular video streaming service will be met with an all too unpopular phrase on the internet, and that is 'subscription price hike'. The company, which received significant backlash when it raised prices for its service in 2015, so much so that it blamed the media for missed quarterly earnings, will bravely attempt this again this year. However, there is a light at the end of the tunnel, as those who subscribe to the lowest tier will not see a price hike.
Netflix announced that starting October 5, new subscribers will be met with new price plans for the service. As mentioned the lower tier plan for $7.99 will remain the same, however, the 'most popular' Standard Plan that offers HD streaming will increase from $9.99 to $10.99. The highest tier option which offers 4K HDR-enabled streaming will increase from $11.99 to $13.99.
Current subscribers will be notified by the company on October 19, and the new price adjustment will take effect in the next billing cycle - whenever that might be in your case. It has to be noted that this is currently only applicable to those in the US, and no mention has been made of other countries, but one should expect similar pricing adjustments across the board.
Netflix has been spending a significant amount of money on content as of late, pledging $7 billion towards new and original content for the service in 2018. Good content comes at a price, and these price increases signify that the sudden explosion in investment by the company is squeezing margins. One of its most anticipated releases Stranger Things: Season Two is coming up later this month, with the series recently receiving its very own 8-bit gaming release by Bonus XP named Stranger Things: The Game on iOS and Android ahead of the premiere.
Source: Business Insider