The Inevitable Netflix Price Rise Aproaches

netflix logo 600x337 The Inevitable Netflix Price Rise AproachesWell.. it was bound to happen and I’m really surprised it hasn’t happened sooner considering the amount that Netflix is spending on acquiring existing content and developing its own original content.

Netflix CEO in his letter to shareholders announced that a $1 or $2 raise for new subscribers is right around the corner (later this quarter, so before July) and while existing subscribers won’t be hit immediately, the phrasing: _Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period._ makes it pretty obvious what will happen before the year is out.

It’s kind of a mystery to me how Netflix manages to stay profitable on such a low subscription model, so I’m fine with a small increase. In theory it’s an opportunity for a competitor to step in, except I already have Hulu+ as well and Amazon Instant streaming doesn’t work on most of my devices so it’s a non-starter.

And let’s face it the combination of Hulu+ and Netflix is a hell of a lot cheaper than pretty much any Cable TV package.

Source: Netflix Letter to Shareholders

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