If you’ve been thinking about becoming a Netflix subscriber, you may want to hurry and become a member. New subscribers can look forward to a higher subscription fee sometime before July, with prices rising by $1 to $2 per month. Current subscribers will continue to pay the normal $8 per month for a continued period. Apparently, the price raise is intended to help with larger budget costs.
CEO Reed Hastings stated, “When we look at the shows and movies that we will be able to get if we have a bigger budget, it’s exciting. We want to make the service better and better so more people will join.”
Will the bumped prices truly help attract more members as Netflix tries to grab more shows and movies? Netflix lost about 800,000 subscribers in 2011 after they boosted prices for members who wanted to continue to get both Netflix’s internet video and DVD-by-mail services. While the risks of this particular price bump do not seem as steep compared to the 2011 issue, it’s obvious that this move will turn away some members who have reveled in the cheap price for streaming.
My main concern is seeing Netflix continuously bump up prices in the future, especially if their “heightened budgets” are successful in terms of creating and bringing on new movies and shows to their streaming platform.