Adding some logic to the outrage of Netflix increasing its prices.
For the fourth time since its inception 12 years ago, Netflix is set to raise its prices. And like all four times before, users are in a huff. Why? Who knows. Maybe because this will be the highest price hike the streaming service has carried out thus far. Maybe it’s because, for the first time, all 58 million U.S Netflixers will be affected. Whatever the case, what’s clear is that the uptick in price is a normal part of the Netflix process. That means if you plan on continuing to use the platform, you need to get over the fact that sometime soon, we’ll be talking about another price jump.
What do you expect?
It’s almost comical combing through social media and reading all the hate towards Netflix raising its prices. Users are really upset. But honestly, what do you expect? Netflix revenue is based on its subscribers. As they continue acquiring content, creating more original content and expanding into different markets, Netflix must naturally find a way to sustain itself and maybe one day make a healthy profit.
Netflix is worth the price of admission
Right now, Netflix is still relatively inexpensive for the vast amount of content they offer. Its most basic plan will only see a one dollar increase, from $8/month to $9/month. Its most popular plan will rise from $11/month to $13/month. For the premium, ultra high definition plan, users will now pay $16/month, up from $14. By comparison, CraveTV recently announced that it will be doubling its monthly subscription price from $9.99 to $19.98. And HBO is sitting at $15 for its monthly subscription. If you compare the amount of content, Netflix almost seems like a bargain.
There’s a debt to pay
OK, so if you’re looking for reasons Netflix continually jacks up its prices, a $12 billion debt is a good place to start. That’s how much debt the streaming giant accrued before borrowing another $2 billion in October. With that heavy a weight to carry, Netflix is always under pressure to meet financial goals and upping your monthly cost is the most effective way (and really their only option) for making that happen.
What’s important for you to focus on is your total monthly subscription and membership costs. That figure can get away from you pretty quickly and trying to add it up in your head isn’t the wisest approach. Signing up with Butter makes keeping up with your subscriptions easy. We’ll let you know when payments are coming out and how much you’re paying each month in total subscriptions.