Netflix users in the US have been receiving emails from the streaming service provider informing them of an impending price hike.
Netflix is no longer the single largest player in the streaming business, with the rise of Apple TV, Hulu, Disney TV and the likes Netflix will have to find ways to cut costs and increase revenues or risk losing business to its competition.
Users on the basic $8 package will see the bill bump up by $1, while those currently paying $11 will see that rise to $13. The most expensive tier will now cost $16 pm, up from $14.
Netflix had disclosed its intention to raise prices for US subscribers earlier this year. The new prices are set to take effect from May 2019, with new users already being billed at the new rate.
The streaming giant plans to use this increase in revenues to boost content development. Netflix is set to spend an average of $15B on content, up from 2018’s $12B.
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Subscribers being primary to the company’s business model, a price hike was inevitable in order to fund its operations. According to Analysts (speaking to CNN Business), existing customers expressed a willingness to pay more as long as Netflox continued to provide a wide selection of popular content.
As of this moment it is unclear as to whether users in other countries will see their prices eventually get hiked, but this should be considered to be within the realm of possibility, as Netflix battles to maintain its dominance in this increasingly competitive space.
