Netflix is one of the most used platforms when it comes to watching original content online. The company spends several billion dollars each year to come up with the original programming. However, consumers have been able to subscribe to the same at minimal Monthly rates. That is about to change; however, Netflix has announced that it is raising the price of subscriptions.
How much will Netflix subscriptions cost?
Previously a mid-range Subscription would cost $9.99 per month. This allowed viewers to watch all of the Netflix shows on two separate devices, such as mobiles, computers, and tablets.
This basic plan will now be increased by a dollar, which means subscribers will have to shell out $10.99 per month.
The second plan that Netflix offered was priced $11.99 per month. This allowed four separate devices to stream the content at the same time. However, after the price hike, consumers will have to pay $13.99 a month to receive the same streaming benefits. The basic $7.99 per month rates will remain the same. This plan allows for streaming on only one device at a time.
However, there is some good news for current subscribers. Netflix has revealed that the consumers who are already subscribed to a monthly plan will not have to pay the higher prices before next month. However, new subscribers will have to shell out the hiked rates in order to subscribe to a plan of their liking.
Reasons behind the price hike
Netflix produces several original series and movies each year. The platform does not have any advertisement revenue, and so, the company solely relies on the subscription fees for all of its functionalities. It is expected that Netflix will spend $7 billion for next year's original programming and contents.
So, the company may be hoping to rake in the huge investments needed for the programming through slight increases in the monthly subscription rates.
Netflix has proven to be a formidable presence when it comes to content. The shows that are produced by Netflix are not shown on regular television. This means that the content can deal with certain taboo issues, which would typically not be present in TV.
Netflix series '13 Reasons Why' garnered a lot of attention for its portrayal of teen suicides in the US. Content creators are also offered the freedom to make the shows as they like as Netflix does not have to go through censorships as normal TV shows would. It remains to be seen how consumers respond to this sudden price hike for the service.
