Netflix began raising prices for American users today, increasing its standard package to $14 per month and the premium package to $18 per month.
The new price of the standard plan has increased by $1 (starting at $13 per month), and the price of the new premium package has increased by $2 (starting at $16 per month). New subscribers will have to pay the updated monthly fee, while current subscribers will see the new prices in the coming weeks as they will be rolled out with the customer’s billing cycle.
Industry insiders have long been looking forward to another round of price increases by Netflix, which was an increase in subscription fees in the United States in January 201
As prices increase, people have more entertainment options than ever before, especially in the United States. A few years ago, Netflix’s biggest competition in the streaming media field was Hulu, the company competing for people’s attention, including playing video games separately, watching YouTube and sleeping.Now, in the United States alone, there are HBO Max, Disney Plus, Peacock, TikTok, YouTube, Twitch and Fort night. Oh, sleep is still a factor. Netflix realized this. A spokesperson told the media that prices are being updated, “so that we can continue to provide more types of TV shows and movies” edge.
The spokesperson added: “We continue to provide a series of plans so that people can choose the price that best suits their budget.”
Netflix hopes to invest more money in its content lists and product features, so prices are also rising. For the past seven years, Netflix has increased its annual content budget every year, spending an estimated $18.5 billion in 2020 alone, although this has changed this year due to the pandemic. Increasing competition means that Netflix needs to continuously improve its game level to ensure that it not only has high-quality content, but also strives to improve the actual platform. It costs money, and the result is an increase in prices.
In Netflix’s recent earnings conference call this month, there were questions about price increases. Greg Peters, chief operating officer and chief product officer of Netflix, said that as the company invests more in content and technology development, they “sometimes look back and ask [customers] Pay more to maintain a virtuous circle of investment and value creation. A person familiar with the matter said that although Netflix is not affected by competitors’ pricing, its new standard price is only $1 lower than HBO Max’s $15 monthly charge-many analysts say this charge is too much for consumers. Taller.
At the time, analyst Ross Benes (Ross Benes) electronic market, Tell edge Netflix is still underestimated. He added that people “not spend a lot of money to get a lot of value.” Because of all these different factors, and Netflix has become a more concentrated streaming service in people’s lives during the pandemic, Netflix may ask for more dollars a month and people will pay for it.
“Some people may cancel, but I bet it will pay off for them,” Baines added.
Executives such as Reed Hastings, co-CEO of Netflix, are also reassured by the loss of some customers-an industry called churn. Hastings told analysts on the second-quarter earnings call in July that people may leave Netflix to subscribe to other TV shows from time to time. However, the goal is to “have so many hits that when you come to Netflix, you can walk between hits without having to think about any other services.” Create a series that convinces people to keep signing up and staying Continuous hits are expensive-soon-this is partly the reason for the price increase.