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Netflix is hiking prices by as much as 18 percent amid rising costs

By Shawn Knight · 32 replies
Jan 15, 2019
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  1. Netflix is raising its rates in the US in what will be the biggest price hike since the company launched its streaming service a dozen years ago.

    Unlike previous price increases which only impacted select tiers, all options are going up this time. The company’s basic package will increase from $7.99 to $8.99, the standard – and most popular – plan will go from $10.99 to $12.99 per month and the premier tier which includes Ultra HD resolution will climb from $13.99 to $15.99.

    New pricing will soon go into effect for new subscribers and roll out to existing members over the next three months according to the Associated Press.

    Netflix will use the extra money to help pay for licensing deals and the production of original content, neither of which are cheap. The company recently paid around $100 million to keep Friends on its platform in 2019 and reportedly budgeted a whopping $13 billion for original content last year.

    Share value in Netflix is up 6.3 percent on the news to $354.12.

    Image courtesy Kaspars Grinvalds via Shutterstock

    Permalink to story.

     
  2. H3llion

    H3llion TechSpot Paladin Posts: 1,692   +438

    goodBaaaaaaaay!
     
  3. p51d007

    p51d007 TS Evangelist Posts: 1,959   +1,229

    Which is why I've never had Netflix. First, they get ya hooked, then slowly creep up the price until eventually it would be up in the cable/satellite range.
    I have Amazon prime, and use their movie, music, shipping. For me, it's perfect.
     
  4. BSim500

    BSim500 TS Evangelist Posts: 607   +1,222

    That right there is the first thing that needs to go. I'm all for having a variety of older content on there, but not at that price per 15-25 year old series...
     
    Reehahs, Hexic, wiyosaya and 4 others like this.
  5. ForgottenLegion

    ForgottenLegion TS Guru Posts: 408   +413

    Agreed.

    When the entire box set can be purchased for $20 spending $100M does not make financial sense.
    Are that many people still watching friends?
    I watch an episode from time to time on cable but I wouldn't cry if it wasn't on Netflix.
    That's an insane price to pay for such an old show. WB is milking the heck out of that cash cow.
     
    wiyosaya and BSim500 like this.
  6. TomSEA

    TomSEA TechSpot Chancellor Posts: 3,123   +1,617

    The girlfriend watches a zillion hours of Netflix a month, and I get in my share too. So $2 more per month really amounts to nothing for what we're using.

    A month's Netflix subscription at the new rates is still cheaper than two people going to one movie.
     
    Edito, Reehahs, mctommy and 1 other person like this.
  7. ckm88

    ckm88 TS Addict Posts: 165   +119

    Warez should slowly come back. There's always Prime and Reddit...for now. That's quite the hike. 13x12 = 156 bucks a year still ain't bad at all but it'll still make us dig deeper.
     
  8. mctommy

    mctommy TS Addict Posts: 297   +68

    Amazon Prime video lack a lot of content compare to Netflix. Aside from Man in the High Castle and Thursday Night Football (I cut the cord 5 years ago), I haven't found much to watch on Amazon.

    Convenience... now that consumption has shifted to smartphones and roku/appletv/media players, nobody wants to fumble to find your DVD and then change the DVD for subsequent episodes. Call it lazy, call it convenience, at the end of the day, it's just preferred consumption method in this day and age.
     
    Reehahs and GreenNova343 like this.
  9. Pinkie Pie

    Pinkie Pie TS Booster Posts: 79   +41

    Which is why I rip all of my DVDs and convert them to h265 format to keep on my NAS media server.
     
    BSim500 likes this.
  10. seeprime

    seeprime TS Guru Posts: 381   +406

    Amazon pulls the same price creep stunt. Prime was $79, per year, when I joined. Then it went to $99. Now it's $119. Netflix priced their basic subscription at $7.99 per month when we joined over ten years ago. it's now getting it's first increase. So, since I pay for both, I believe Netflix has been the most price stable, until now. I expect all services that are near market saturation to jack up their prices, or cut back on quality. It's the "Apple business model."
     
    GreenNova343 and Reehahs like this.
  11. mctommy

    mctommy TS Addict Posts: 297   +68

    I did too for some of them... but you have to remember, you are likely the exception. Not that many people have the rig and/or the patience to convert their DVD library to put on a NAS or even have a NAS in the first place.
     
  12. ZipperBoi

    ZipperBoi TS Member Posts: 21   +23

    Amazons movie selection is trash. I use Netflix and what ever is not on there I pirate and watch with Plex. Nice and easy.
     
    Hexic likes this.
  13. amstech

    amstech IT Overlord Posts: 2,226   +1,424

    Netflix will eventually charge $50-$100 per month.
    Question is, with so much recycled content, and a push for new stuff, where will the balance meet, and what will users be willing to pay?
     
  14. wiyosaya

    wiyosaya TS Evangelist Posts: 3,949   +2,266

    There must be a :poop: load of subscribers watching Friends for them to shell out that much. Personally, I could care less. I never had and still do not have any interest in the show.

    With the saturation of streaming services, NBC just announced one, too, my bet is that they will not all survive.
    Even with a 10% price increase each year, that would be a long way away.
     
  15. Fobus

    Fobus TS Addict Posts: 104   +75

    My guess is that their internal analytics show that lots of people watch it, and so it makes sense for Netflix to pay for the rights. They aren't doing it just out of love for Friends.
     
    SantistaUSA likes this.
  16. netman

    netman TS Addict Posts: 308   +95

    "Netflix will use the extra money to help pay for licensing deals and the production of original content, neither of which are cheap."

    No one asked or wanted Original (Trash) Contents from Netflix to begin with!!!
     
  17. Hexic

    Hexic TS Evangelist Posts: 505   +334

    Dilly Dilly to that! That system hasn't failed me in years.
     
  18. Puiu

    Puiu TS Evangelist Posts: 3,427   +1,885

    when? in 50 years? by that time who knows how much inflation will affect the value of a dollar.
     
  19. amstech

    amstech IT Overlord Posts: 2,226   +1,424

    It will happen much sooner then that.
     
  20. wizardB

    wizardB TS Booster Posts: 147   +47

    It never left you just need to know where to look.
     
  21. Footlong

    Footlong TS Addict Posts: 141   +71

    100 million dollars for "Friends"! This show must be a huge darling for Netflix consumers, because they could produce good original contente with that much!
     
  22. toooooot

    toooooot TS Evangelist Posts: 810   +398

    I have no doubt that most of Netflix's subscribers would say goodbye even at 50 bucks.
     
  23. Chesterfried

    Chesterfried TS Enthusiast Posts: 39   +12

    I used to be just like you until I watched Stranger Things.
     
    Reehahs and Puiu like this.
  24. Sir Alex Ice

    Sir Alex Ice TS Enthusiast Posts: 50   +20

    I do not live in the US and in Romania the content they offer is quite limited compared to what people in States have. So from my point of view a price increase is not acceptable as they are not offering me more content to chose from.

    They do have some original content that is interesting, I like their anime production, a few of the new series. But if you want more money, give more things to watch, interesting things, not movies or series with scripts stitched together or blatantly ripped off from popular shows or stories.
     
  25. Evernessince

    Evernessince TS Evangelist Posts: 3,987   +3,476

    Amazon prime has the same problem though. They continue to increase the price. At the very least with netflix they are spending that money on making and licensing new content. Amazon takes your money and adds prime music or some other service you may not even use while that money could have spent on content.

    I don't know about that. Many people pay $80+ a month for cable TV and that's with ads. I'm willing to bet that people will pay more money for more content.

    Blame international law that was never intended to take the internet into consideration. Netflix is forced to pay per region for content, which gets pricey very fast.
     

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