![]() Netflix’s Apple App Store ratings are lower now than they were at the start of 2015 thanks to a purge of old or bot reviews across the platform in late March of this year, but the number of user reviews is increasing at a rate faster than in any prior year on record. But the message from consumers is clear: a $1/mo increase is not enough to turn them away, even if Netflix lacks a killer app in the way Disney+ has Marvel and The Mandalorian, Peacock has The Office and HBO has hits like Game of Thrones and Watchmen Year after year, analysts predict that Netflix is getting too expensive and is pricing out users who turned to it over cable in hopes of saving money. Less people talking about Netflix after news of a price increase means people aren't that concerned about paying the extra $1. Usually, an upward movement in Talking About Count is a good thing for a company, but not when there's news that might make people upset in the way a dramatic price increase would. The same happened both last week and in April of last year when increases were announced. Facebook Talking About counts for Netflix show increases in discussion of Netflix around previous price increases by the time the third increase was announced around October 5, 2017, Talking About Counts actually went down. The slow rollout of price increases has had a dampening effect on customer outrage. ![]() From 2015 to 2017 the price only rose $1/mo, whereas from 2017 to 2019 it rose by $2/mo. Rather than announce large price increases at once, Netflix has increased their “standard” price by around $1/yr on average. That seems like a dramatic increase which would turn users off of the service, but the way the company has rolled out these increases has kept users on board. Over the last six years, Netflix’s “standard” plan has shot up from $8.99 upon release to $13.99 after last week’s announcement. Last week, it announced the tradition is being kept alive the “premium” plan will increase by $2 up to $17.99/mo, while the “standard” plan will increase by $1 up to $13.99/mo. It’s “Netflix is increasing prices” season.Īlmost every year since 2014, Netflix has incrementally increased the cost of its most popular, “standard” plan. Investors approved of Netflix’s move to boost its revenue, and sent the company’s shares up 5.4 percent, to close Thursday at $194.39.It’s that time of year again. Some Wall Street analysts say recent business trends suggest Netflix may even surpass that number when it reports its results. The company has said it expects to add 4.4 million subscribers in the quarter, which would give it 108.4 million subscribers worldwide. ![]() The price increase also comes 11 days before Netflix is scheduled to report its third-quarter results. “I don’t think we’ll see an immediate impact (on Netflix subscriber numbers), but this could affect subscriber growth in the first or second quarters (next year) for Netflix.” “I expect both competitors to exploit the fact that they are cheaper, and expect households below median income to notice,” Pachter said. Pachter thinks Netflix’s price increases would be more likely to dissuade potential new subscribers, and that Amazon and Hulu may draw those customers to their services instead. The last time Netflix increased prices, the company took the step of grandfathering in prior customers at their old rates for two years before they would see their subscription fees go up. Back in 2011, the company saw hundreds of thousands of customers drop its service after it said it would no longer include streaming and DVD rentals in a single subscription. Netflix has also had a mixed history of price increases. Netflix still offers a subscription plan for $7.99 a month, but that only allows for streaming on one connected device at a time and doesn’t support HD streaming. Hulu’s service starts at $10 a month, while Amazon’s can be had for as low as $8.25 a month, based on its $99 annual membership fee. With its price increase, Netflix now charges more on a per-month basis than similar plans offered by either Hulu or Amazon. It was the first time an internet-streaming program won the Best Drama Emmy Award. ![]() In September, Hulu stole some of Netflix’s thunder when its show “The Handmaid’s Tale” won the Emmy award for Best Drama series. Original programming has become a marquee area of focus for Netflix and its streaming rivals such as Hulu, and Amazon, with its Prime Video service. Sign up for our Coffee Break newsletter here. Get TV Tonight delivered to your inbox for free on weekdays. ![]()
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