It isn’t overstating things to say that Netflix has completely revolutionized how we consume TV shows and movies. The online subscription model, which gives access to a vast repository of great shows and movies has enjoyed so much success, it has sparked its own cultural phenomena (“Netflix and Chill,” anyone?) and sparked a wide variety of competitors to also offer their media via the internet. You could even say that the influence has spread to other industries with Amazon looking to start a Netflix for video games sometime next year.
As with all other companies, however, the good times can’t last forever and yes, this time, the bad news is true. Netflix has increased prices for its subscriptions, which means it will now cost more to access all of the streaming giant’s TV shows and movies. The news came out of Netflix HQ on Tuesday that all streaming plans will be going up in price. New customers will be faced with the new prices immediately and existing customers will see their bills go up over the next three months.
The new Netflix prices explained
If you are a Netflix subscriber in the U.S., you might want to know how much this is going to cost you. Well, that all depends on what type of Netflix subscription you have. The bad news is that Netflix’s most popular plan has seen the biggest increase. The plan which offers users high-definition streaming on up to two different devices at the same time has seen its price jump from $11 a month to $13. The cheapest Netflix plan has gone up from $8 a month to $9 and the Netflix ultra-high-definition plan now costs $16 a month, up from $14.
There is good news, however, for global Netflix subscribers. Speaking to Digital Spy, Netflix confirmed that “price increases are specific to each country.” This means the U.S. price hikes will not be repeated all around the world. It isn’t all good news, however, as the price increases will affect you if you normally pay in dollars, unless you are a part of key markets like Mexico and Brazil.
Netflix has been investing heavily in new content recently. The streaming giant spent an estimated $3 billion on original content last year and it is believed the company will spend the same amount next year. This is all to be expected though, as the online streaming market becomes increasingly competitive. Alongside the established big players like Amazon Prime and HBO, Disney has recently entered the fray with its new streaming service. This knocked a double blow to Netflix, which saw a number of its most popular titles stripped from its roster just as a powerful competitor began to take it on.
The increased prices may cause a few to turn off, but if the added revenue is put into new content then hopefully, the extra couple of dollars a month will be worth it.