Economy

Mobile Will Still Cover Netflix, Despite Price Increase

Mobile Will Still Cover Netflix, Despite Price Increase

Netflix has been at the forefront of streaming technology, forcing mainstream television companies and film distributors to reconsider their options. Netflix is aware that subscribers may not like the price hike, but the company assures customers the reason for the price increase is to provide more exclusive content.

The most popular Netflix plan, which supports high-definition video and allows simultaneous streaming to two screens, was raised a dollar a month to $10.99.

Pricing for the basic single-stream plan will remain unchanged at $7.99 per month.

Netflix announced Thursday it is raising the prices of some of its subscription packages for US, UK and some other European subscribers.

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The spokesperson added that existing users will begin receiving notifications on October 19. As Netflix expands into original content, its operational costs increase as well and, eventually, some of those costs will be passed onto Netflix's customers. Bringing the standard plan price up to $10.99 and the Premium plan to $13.99.

But the new revenue will only come if Netflix doesn't lose a ton of subscribers because of the price increase.

She added that more than 1,000 hours of original content was being added to the site in 2017. The firm order for 75 aircraft had a list price of US$5.6 billion, although large orders typically secure large discounts. This made a lot of people ask whether or not this would effect T-Mobile's Netflix On Us promotion and, it doesn't. So there's that, T-Mobile's Netflix On Us promotion will still be available even with Netflix's prices increasing.

Michael Pachter, who covers Netflix for Wedbush Securities, noted that the price increase is only in the USA and estimates that the company will take in about $700 million in new revenue from the new pricing structure.