The Inevitable Netflix Price Rise Aproaches

<a href="" rel="attachment wp-att-118318">netflix-logoWell.. 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

Overly opinionated owner and author of You can get updated on his posts directly on the blog here or through the usual social networking suspects.

What? You expected me to say something interesting here? That's what the blog posts are for.

Eoghann has often wondered if people read these little bio things we have to fill out everywhere on the internet and, assuming they do, why?

Tell Me What You Think...