The new Netflix prices
After a long time fearing a rise in Netflix prices, our worst nightmare came true at the end of June. Netflix finally announced a increase in your fees, although he gave a small margin of time (and respite) to all those who were already subscribed. In this way, the subscription only changed the price for new registrations, while the rest had to wait for Netflix at some point to inform them that within a month, their rate would change – thus giving the “old” customer option to cancel in time if he was not interested in the new plans.
Said and done. The content on demand platform has already started to send its informative email to all its subscribers, notifying them that their current subscription fee will undergo a change from next month. Will be next Wednesday, September 4 when the new plan becomes effective and the prices of the Standard and Premium packages change.
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In this way, the Standard plan (which offers HD resolution and simultaneous connection and download for two devices) will cost 10.99 euros to assume a disbursement of 11.99 euros per month. The Premium plan, for its part, (with four simultaneous devices, resolution in HD and Ultra HD and downloading videos on four computers) goes from 13.99 euros which currently costs 15.99 euros per month. The Basic plan remains unchanged, with a cost of 7.99 euros per month and the ability to view the contents and download them in just one device.
Netflix explained long ago the reason for this rise. According to the company, with an increase in prices, they can continue creating more and more high quality original content, to offer users a more varied catalog. It is likely that the fall in earnings also has something to do with this story. In the last quarter, the company invoiced 614.7 million dollars, which represents a 8.8% less that the same period in 2018, collect in Blupper. And is that the number of customers only reached half of what had been calculated, thus causing a mismatch that even influenced their stock market price (where it fell 12%).
In the absence of a larger volume and with such ambitious projects on the table, Netflix has no choice but to raise prices to compensate. Of course, it is better not to stretch the gum too much, because the supply of content on demand is increasing (and more aggressive) and Netflix could end up suffering a stampede if their prices end up being too expensive for the final consumer.