While Netflix is killing the online video streaming game, their primary focus is on original content which isn't cheap to produce. Popular original shows like House of Cards, Stranger Things, Ozark, and 13 Reasons Why have driven massive amounts of subscribers to the platform.
Earlier this year, the streaming giant said it would spend $6 billion this year on producing more new content exclusively for the platform. As a way to recoup their losses and keep the wheel turning financially, Netflix has increased their monthly pricing on two out of the three streaming services for both new and existing subscribers.
Here is the new pricing model for the company:
- Their Basic plan which offers standard definition video on one device at a time will remain at $7.99 per month
- Their most popular Standard plan that allows HD streaming on up to 2 devices will rise from $9.99 to $10.99 per month
- Their Premium plan which offers HD and UHD streaming on up to 4 simultaneous devices will increase from $11.99 to $13.99
This isn't the first time Netflix has upped their pricing, and I'd be willing to bet it won't be the last. However, this time many consumers are frustrated.
I've seen a lot of users expressed concerns online that the library of streamable third-party content is not as good as it used to be since the company routed their focus on original content.
Will this change negatively affect Netflix? Not likely, but the trend of increasing prices leaves room for cheaper competitors to steal away market share.