Your Netflix Subscription Price Is About to Increase

Your Netflix Subscription Price Is About to Increase

Your Netflix Subscription Price Is About to Increase

"We believe Netflix is well positioned to have over 100 million global subscribers by 2020, along with ongoing operating margin expansion as the company spreads content and marketing spend over a growing installed base", senior research analysts Michael Olsen of investment bank Piper Jaffray said in a statement to CNBC.

Here is what you need to know about the increase.

"People don't like price increases, we know that", CEO Reed Hastings said on an earnings call previous year. The Basic Tier (1 stream at a time, no HD) will stay at $7.99.

With the latest hikes, Premium accounts are now more costly than Hulu's commercial-free plan ($11.99 per month). The standard plan can stream on two devices, while the premium plan can stream on four. Not that there's anything wrong with that!

"Most investors believe that Netflix is priced well below its value to consumers and want to see the management continue to increase monetization", Rob Sanderson analyst at MKM Partners said.

"Since 2016, members have been able to watch Netflix on the go without connecting to the internet by downloading content onto phones, tablets and Window 10 laptops". We believe that Netflix's pricing power has increased materially over the past few years as their content slate and technology has improved. They increased their spending budget to $6 billion this year, and chief content officer Ted Sarandos recently said it will likely go up to $7 billion next year. Not bad. Beyond that, the plans are the same. You guessed it; the same as the other two. Maybe it's a good time to stop and take stock of how often you use that subscription anyway. Users will receive 30 days of notice before the price hike begins as the rollout proceeds over the course of several months.

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