Netflix justifies this price increase by the fierce competition from other streaming platforms. In its early days, Netflix operated alone in an empty
U.S. users will have to pay a higher subscription fee now to take advantage of the Netflix catalog.
As lockdown measures are once again in the news around the world, streaming platforms are rubbing their hands. Indeed, as was the case with the first lockdown, these companies have experienced an impressive increase in new users. It is very likely that this will happen again with the new measures that have been put in place. Today, while the United States is not affected by lockdown, Netflix has just announced an increase in the prices of its subscriptions for American users.
The basic formula has not changed, it remains at $9 per month. However, the most popular intermediate package, which is usually at $13 per month, is going up to $14. The most important increase is for the Premium subscription. This option allows up to 4 people to enjoy the account simultaneously in 4K resolution. Up to now, the Premium subscription was $16 per month, but is now $2 more expensive, reaching $18 per month.
Why make such a decision?
Netflix justifies this price increase by the fierce competition from other streaming platforms. In its early days, Netflix operated alone in an empty ocean where anything was possible. Today, the leader is suffering from fierce competition from new players who are increasingly grabbing market share. To cope with this phenomenon, Netflix is investing heavily in producing and acquiring quality content. In addition, the platform continues to focus on the user experience. Netflix is spending a lot of money to bring new features to the platform.
In the current year 2020 alone, Netflix has spent approximately $18.5 billion on original content. This price increase is one of the only solutions for Netflix to continue to excel. In Europe, a similar increase could be expected.