What the Tech? Netflix raises cost of subscription packages
Netflix is raising prices for current customers and increasing the monthly rate for new customers. The increase in monthly subscriptions is $1 or $2, depending on which package subscription you choose.
Netflix is spending a lot of money on acquiring new content and producing its own movies and TV shows, but could this be the start of cord cutting being less of a savings over cable and satellite than it is right now?
Netflix lowest streaming package is $7.99 per month, but that restricts customers from watching Netflix on more than one device at the same time. It is also for Standard Definition. To watch on two screens in Standard HD, the cost is $12.99/month, and to watch on four screens (including phones, tablets and televisions) in Ultra HD costs $16.99 per month. For cord-cutters, watching live TV requires a second streaming service such as Sling, Direct TV Now or YouTube TV. Sling is the most popular of those and monthly subscriptions start at $25. The company calls the packages "Orange" and "Blue" and each one includes a different package of live TV shows. To watch a combination of the two, Sling's monthly charge is $40 per month, which also allows up to four people to watch at once.
If that's all you need, or get, adding the most expensive packages is still much cheaper than cable or satellite.
But here's why I think it could get interesting: These companies are attracting new customers every day with free-trials and low prices. What happens next? Will prices for all cord-cutting services go up? And how much? Will networks begin charging the streaming services more to air their programming, like they have with cable companies?
Like I said it'll be interesting to watch.
As of last December, Netflix had 58-million subscribers in the United States. The increase means an additional $250,000,000. It’s stock ended the day down 2 percent from Tuesday.