ALL U.S. Netflix Subscribers To See Largest Price Increase Ever
Netflix is raising prices again and this time the increase will be the largest in their 12-year history. If you're a new customer, you'll see the price jump immediately. Current subscribers will get a short respite before paying the higher rate.
The popular streaming service, which as of last September had 58 million U.S. subscribers, is raising prices from 13 to 18 percent. The last Netflix price increase came in late 2017.
If you have the plan that allows high-definition streaming on up to two different devices at once, your price is going from $11 per month to $13. If you have the premium plan that includes ultra-high definition, your price will go from $14 to $16 per month. The lowest price offered will now be $9 per month. Here in Iowa, we're also paying taxes on our Netflix subscriptions this year, for the first time.
While new Netflix customers will see the price increase immediately, it will affect current subscribers over the next ninety days.
Why the increase? Netflix needs it to help pay for everything they're doing. They're pumping BIG money into original shows and movies and the service, according to the AP/KETV,
hasn't been bringing in enough money to pay for all its programming and other business expenses.
Netflix has almost $12 billion in debt, so an increase was essential. In a statement, the company said,
We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience.
A big piece of news came out of the Consumer Electronics Show (CES) last week, which could benefit Netflix and other streaming services. New software has been developed that shows deceptive activity. It can then ask a subscriber to upgrade their account to allow for sharing.
Yahoo Finance says password sharing costs Netflix $2.3 billion every year. The new price structure Netflix is implementing today means that is about to get even worse.
However, Netflix isn't likely to start policing it anytime soon, according to the CEO. Reed Hastings says,
We love people sharing Netflix whether they’re two people on a couch or 10 people on a couch. That's a positive thing, not a negative thing.
$12 billion in debt and losing $2.3 billion to password sharing on an annual basis, but not concerned people are watching their product and not paying for it. Wow.