Netflix is Increasing Monthly Subscription Prices

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Netflix passed the 50 million subscriber mark earlier this year, passing the number of subscribers to America's largest cable companies. That allows two screens at a time and HD definition. As someone who has been with Netflix since before they launched their streaming service (I was all about that DVD mailing service), it's a little disappointing they don't offer further incentives for longtime subscribers, but I do appreciate them maintaining the $7.99 basic plan.

New prices will be phased in over several months.

It will be the first time Netflix has implemented a price increase since October 2015. Its most popular plan, which is the standard plan, will go up from $9.99 to $10.99 (an increase of a dollar) while its premium plan will go up from $11.99 to $13.99 (an increase of $2). News of the rate hikes led exuberant investors to push the stock to an all-time high Thursday, valuing the company at around $84 billion. Netflix's most expensive option allows users to stream different shows on four screens in 4K. The company ended the second quarter with nearly 104 million users, with a majority outside the US.

Netflix has announced again today that another price increase is coming. A few foreign territories also produce profit.

While news like this is never fun, the increases are relatively modest.

"I don't think most existing subscribers will even notice (the increase)", Pachter said. "The content, not price, is the leading churn/churn-back factor amongst Netflix subs". The sixth season of HBO's Game of Thrones was reported to have cost US$10mil (RM42.36mil) per episode. It makes sense, however, as Netflix is continuing to produce original content. Ted Sarandos of Netflix claims that by next year they intend to spend at least $7 billion on original programming. "There are so many great shows we don't have yet".

Shares of Los Gatos, California-based Netflix gained 4.1% to US$192.03 (RM813.54) at 12.42pm in NY.

"We suspect Netflix will push [the price increases] through rather quickly to avoid the "noise" created by their multi-year grandfathering approach a couple of years ago", Greenfield wrote in a blog post.

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