Published: Sun, October 08, 2017
Economy | By Guillermo Lane

Netflix announces price hike

Netflix announces price hike

After two years without raising prices, online content provider Netflix is boosting the cost of certain subscription plans.

Patterson maintained his outperform rating on Netflix and his $205 12-month price target.

It's interesting to also note that Disney will be removing their content from the streaming service in 2018, perhaps they're trying to make some more money while they can.

Netflix has increased prices for customers in the United Kingdom and US.

Reportedly, the price increases were due to the service adding more original content, along with introducing new product features and improvements.

Netflix said it will start sending out notifications by email to its subscribers beginning October 19. The basic, non-HD UK subscription will remain at the current price of £5.99. The newest price hike is a 10 percent increase.

More news: Teams which have qualified for the FIFA World Cup so far
More news: Germany, England qualify for 2018 World Cup
More news: United States to boost military personnel in Puerto Rico: senator

The most popular Netflix plan, which supports high-definition video and allows simultaneous streaming to two screens, was raised a dollar a month to $10.99.

The streaming giant last raised prices in the USA two years ago. In August, Ted Sarandos, Netflix's chief content officer, told Variety that the company planned to spend about $7 billion for original programming next year.

In 2011, over 800,000 subscribers in the U.S. deserted the streaming service after it dramatically increased its fees.

Amazon, Netflix and USA streaming service Hulu, are all reported to be working hard to discover and create the next "Game of Thrones" and secure the popularity of their business.

In your account settings, go to the section that says Change Plan: the direct link is here. "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".

It's understandable that people would be upset over price increases, but these probably aren't the last ones that consumers will have to deal with.

Like this: