Netflix CEO Warns that a Price Increase is Coming in the Future

[dgstorm]

Most of the time, the news we get to report is pretty cool. Unfortunately, sometimes we "get" to report the bad news too. Today we are faced with that task again. Without giving any specifics, Netflix' CEO Reed Hastings announced to investors that the company plans to "carefully push" consumers toward a higher price model in the coming years.

This is executive parlance for "we are going to raise prices." Here's a quote with more of the details,

Netflix may be less tolerant of widespread password sharing in the near future. The company has a one-stream, standard-definition package priced at $7.99 a month, but “we also want to motivate people to move up to the two-stream and the high-def and the ultra-high-def”, Hastings said, though he didn’t elaborate on what the incentives to switch plans would be.

Prices of current subscriptions won’t change this quarter, but Hastings said prices will increase over the next decade.

“We want to take it very slow,” Hastings said. “Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately.”

Hmmm... whether consumers take kindly to these eventual price increases depends on how large they will be. Netflix has been creating some solid unique content lately, and they plan to spend $1 Billion or more on new shows next year, so perhaps it will be worth it. It also sounds like they will roll out these higher prices a very slow rate, so perhaps it won't be too bad. Discuss your point of view.

Source: The Guardian

 

[hughlle]

As is stated, it really depends on how much, and whether this increase will end up being a continuous creep (like my phone contract, which is tied to inflation, and justs seems to keep going up and up and up)

But if it's a small amount, then I think most people won't really care. It makes me think of two things. First was last night on the amazon prime day; I kept seeing things for %40 off!, but then you remember that it was just a £10 SD card and that priuor to the savings it was only a few pounds more expensive, and hardly enough to actually push a sale. Or alternatively with regard to energy price increases or benefits cuts, they say OMG you'll all be at a loss, but in reality, it's like £30 a year, which over the course of 12 months really is nothing worth getting up in the air about.

Either way, I see no reason whatsoever to pay for Netflix or any alternative. Unless I get everything from one source then I will not pay. A contract for content A, C, and E, and contract with a different company for content B, D, and F, and contract with someone else for content E and G. No thanks. I've survived the past decade without tv just find so I think i'll just continue like that until there is something g worth paying for, and it can all be had under one sensible package (not something like skjy where sure you can get everything you want at a cost of both testicles, a leg and or an arm.

 

[malberttoo]

I don't think most people will care about a small increase either.

Also I personally have no issue paying a small increase (maybe a dollar or two??) for multiple streaming.

 

[Arizona Willie]

If only their UHD < was > UHD. Their streaming is so bad ( probably the fault of the Internet really ) that their UHD signal very rarely makes it to our house. Our set will show us what type of signal we are receiving as the program plays and it drops clean down to old 480 sometimes but most of the time is is 720 ( I think that's right ). Occasionally we will see a full UHD signal but it doesn't last long. Fortunately our tv upconverts very very well so we still get a decent picture but not a true UHD most of the time.

Certainly not worth paying extra for.

 

[malberttoo]

If only their UHD < was > UHD. Their streaming is so bad ( probably the fault of the Internet really ) that their UHD signal very rarely makes it to our house. Our set will show us what type of signal we are receiving as the program plays and it drops clean down to old 480 sometimes but most of the time is is 720 ( I think that's right ). Occasionally we will see a full UHD signal but it doesn't last long. Fortunately our tv upconverts very very well so we still get a decent picture but not a true UHD most of the time.

Certainly not worth paying extra for.

I agree it is most likely your Internet, or something between you and your provider. Netflix is usually an excellent experience for me at home.

 

[Arizona Willie]

Fortunately our Sony Bravia UHD upconverts so well you can't really tell that it isn't UHD.

If it wasn't for the function that displays the incoming signal we wouldn't know we were not getting a UHD signal.

I the original Wii and it still works and I use it to weigh every morning and it was not designed even for HD let alone UHD and the picture from the Wii is upconverted and fills the screen and surprised the hell out of me the first time I saw it. Couldn't believe how sharp and clear it was. Fantastic job Sony people.

It's the idea of knowing Netflix is telling me I'm looking at UDH programming and I am NOT getting it --- most of the time.
Yes the picture is still really really nice but it isn't true UHD.

If that really matters as long as it looks great --- who knows / who cares. Well I do just a little bit. I certainly would not pay Netflix very much extra for " UHD " programming if it doesn't arrive as a full UHD signal consistently more than 90% of the time.

Come to think of it, I don't know if I am paying extra for UHD now or not from Netflix. Guess I ought check that out.
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I agree it is most likely your Internet, or something between you and your provider. Netflix is usually an excellent experience for me at home.