Netflix raises prices on all streaming plans in US

Netflix subscribers in the United States are about to see a price hike across all subscription tiers.

The service’s most popular plan will increase from $11 to $13 per month for HD streaming. Netflix’s most expensive plan, which offers 4K content and up to four simultaneous streams on different devices, will increase from $14 to $16. And the service’s basic plan, which doesn’t offer HD, will raise from $8 to $9.

These price hikes will affect all new subscribers immediately, according to AP, with current subscribers set to experience the hike over the next three months.

Netflix CEO Reed Hastings has said in the past that incremental price hikes will be needed as the company invests more money in original series and licensing popular programming.

“Price is all relative to value,” Hastings said in late 2017, the last time American subscribers saw an increase. “We’re continuing to increase the content offering and we’re seeing that reflected in viewing around the world.”

Original series and licensed content don’t come cheap. Netflix reportedly spent $100 million on retaining the streaming rights to Friends, one of the streaming service’s most popular series, according to various reports. The streaming service is also investing heavily in building its own exclusive library. It had approximately 700 original shows in 2018 alone and is expected to develop more this year.

As other streaming services like Hulu — and new platforms like Disney+, WarnerMedia, and NBCUniversal’s recently announced service — start to flood the landscape, Netflix will have to continue investing in original content and films to keep subscribers interested. Netflix currently has 58 million domestic subscribers, according to the company’s most recent investors meeting, with close to 80 million international subscribers.

Developing a slate of foreign TV series and films, like the Golden Globe winning Roma, directed by Alfonso Cuarón, is also a top priority for the company. Netflix has amassed approximately $8 billion in longterm debt as of September 2018 — a cost of investing so heavily and so quickly in original content. Jon Landgraf, FX Networks president, told a group of reporters in 2016 that Netflix’s rapid growth seemed unsustainable.

“I think it would be particularly bad if anyone in one company, and I don’t care what company that is, if they were able to seize a 40 or 50 or 60 percent market share in storytelling,” Landgraf said at the time. “They can’t double again and double again and double again because the entire earth’s surface would be covered in Netflix shows in 20 years.”

The Verge has reached out to Netflix for additional details.

Comments

Value-wise this seems fair. Nonetheless I bet people will not be happy about it, their original shows are so good I can see the case for higher prices.

Yea this still far cheaper than in-home cable that has you paying for stuff you don’t even watch.

That’s the equivalent to having Hulu, CrunchyRoll, Amazon Video, and Netflix. Then only using Netflix even though you’re paying for the others. Cable forces that.

You’re right. We’re still in the clear.

That’s the equivalent to having Hulu, CrunchyRoll, Amazon Video, and Netflix. Then only using Netflix even though you’re paying for the others.

Or equivalent to adding to its library low quality shows and movies that you’re not interested in; or removing shows, that you were actually interested in and watching, without effective prior notice.

Yea this still far cheaper than in-home cable that has you paying for stuff you don’t even watch.

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Netflix reportedly spent $100 million on retaining the streaming rights to Friends

Is it though? They keep trying to push me toward a show about a hot dog that looks like it was ,are to make kids even dumber. Their original content used to be top knotch. Now it’s I’m not sure if it’s a knotch. Maybe it’s a glory hole?

From that sentence I think you overestimate your intelligence anyway.

In all fairness, dumb people can also be worried about becoming dumber.
(This comment is not intended to disparage OP in any way.)

I paid $30 for 2 movie tickets to see Aquaman on a date. To me getting Netflix in 4K for $16/month is a good deal. It’s cheaper than buying movies you want to watch individually and it’s cheaper than cable with HBO.

You assume they will keep getting movies…which is growing more and more unlikely as every other production house is going to be tied to their own parent’s streaming service.

If you love Netflix originals that is great but say goodbye to basically any superhero movie. Maybe you loved "Bright" though…

Agreed. def don’t get netflix for the movies. now that house of cards is over, i’m not sure i’ll stick around myself.

You are right and not only that. They question is how far can they go before people will quit their Netflix?
The idea behind the low pricing was, to have people stay with Netflix, even when at a certain time there is not content for them.
I have Netflix but actually just watch a hand full of shows. There are sometimes months between shows that I don´t watch any Netflix.
It is less enticing to stay with them if the prices hike up. I am from Europe so I still pay the 12€, but once they will go above 14€ I will quit Netflix whenever I don´t need it.
Actually, in the last 12 months of Netflix I watched 8 movies (3 of which I had already seen) and about 5 series. I watched twice the amount on Prime – and that gives me free priority shipping aswell.

So you get ripped off one place and that justifies what you pay in another?

But it’s about the same price as just HBO (Now).

Netflix’s value proposition is dwindling as media houses establish their own streaming services and libraries become piecemeal everywhere.

I think their Marquis shows are pretty good but I’ve honestly not seen anything near as consistently good as I have from HBO and there is a lot of fluff in there.

Quantity versus quality for sure, but if I had to pick one I’d still choose Netflix over HBO. I want to watch True Detective, but hate that I’d have to basically wait to finish it in 3 months or just sub when the season is almost over.

I guess it just depends on how you like to view things. I very regularly wait a couple weeks between shows on HBO and watch 2-3 at a time depending on my schedule. I rarely watch more than that on Netflix so it doesn’t really make much of a difference to me, and though this is a somewhat of a slow time for HBO originals, they regularly go through periods where multiple shows are on and I enjoy watching those different shows together on a weekly basis.

I guess it is just a matter of perception. There are still library shows on HBO that I could binge (or re-binge) if I felt like I needed to extract extra value out of my sub or kill time until I could binge a new show.

The same "subscribe when good show is on" is just as true of Netflix as it is of HBO. I very rarely have multiple Netflix shows that interest me and premiere at the same time.

I agree. A couple of years ago I would have said that Netflix’s original content was consistently good, but now it’s more of a firehose of crap that happens to have a couple gold nuggets sprinkled in with the turds.

Not sure what original shows are "so good". Their "original original shows" were excellent but their new ones are mediocre at best. But I guess mediocrity is good enough for the masses, which is the goal of the business after all — satisfy the masses.

I agree. Lately it seems like they’re focused on quantity rather than quality.

Stranger Things, Black Mirror, 13 Reasons Why, Orange Is The New Black, Dark, GLOW, Mindhunter, Ozark, Punisher, Jessica Jones, Haunting of Hill House … just to name a few.

$13 for HD is fine. $15 is fine as well, when that inevitably hits. After that, Netflix will become less of an "Of COURSE you should have Netflix…" to more of a "Well, take a look at their catalog and see if it’s interesting…" type of thing. At $10 a month, Netflix is the type of service where you just keep it running and don’t even bother pausing/canceling it because, whatever, it’s $10. Like I said, I think that remains true up until about $15, at which point it sort of becomes another type of service.

the problem is that now that all tv services are launching streaming services and charging their prices…its getting too expensive to shell out for all the different services now. Things like Netflix were meant to be a cheaper alternative to TV but now its not getting any cheaper and people would probably just decide on getting cable and watching the shows there as its one place everything is consolidated.

Eventually you are going to hit a point where you have to choose a handful of services and decide to omit others due to cost. Jacking up the prices doesnt help that much…thats the way i see it.

At this time i dont sign up to anything yet but for me its Netflix, Amazon video and disney life because it seems to cover everything i need. However things like Star Trek which could be exclusive to CBS (at least in the US) is a forth service and if everyone starts doing that (putting their stuff only on their streams) then it wont be any cheaper than cable etc.

Their Blu-ray/DVD-only plan is starting to look mighty fine at $10/month for access to virtually everything…

I had no idea they still had that.

Yeah but… disks. Having to wait, plan what you want to watch is just not 2018. It’s not even 2005.

AXXO .avi rips changed the world of media availability more than any corporate entity, change my mind.

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