Monday, 20 August, 2018

Netflix jacks up prices as original content investment takes its toll

Netflix jacks up prices as original content investment takes its toll Netflix jacks up prices as original content investment takes its toll
Stacy Diaz | 07 October, 2017, 06:25

On Oct. 19, Netflix is set to announce the changes to their subscribers, and they will start reaching out to customers individually to let them know when exactly their bills will increase. Over the pond in the US, American streamers will also see a bump in pricing to $11 and $14 a month on standard and premium respectively, a $1 increase.

The company's most affordable plan will not change from its current price of $7.99 per month.

The company sent out an email to all its users informing them of the price hike that will take place across the two premium tiers that offers. Netflix's most expensive option allows users to stream different shows on four screens in 4K.

The second season of Stranger Things is set to launch later this month, but we also have some bad news to go along with it. Netflix has announced an increase in subscription prices for USA customers. Luckily, anyone on the basic plan (which doesn't allow for HD) will be able to keep their price of $7.99 a month. The increase won't bother most subscribers, and price won't be an issue until the service charges above $15 for their subscriptions.

A Netflix representative said the company will email subscribers and send out app notifications on or after October 19, 30 days before their billing cycles.

Given the huge amount of competition in streaming, small but steady price hikes for customers are basically a given. In fairness, their last increase was in 2015.

Netflix says customers will be notified of the change based on their billing cycle, beginning on October 19th. The company said that by the end of the year it will have spent around $6 billion for original content in 2017.

Netflix's price increases always spark controversy and complaints.