KEEPING UP WITH THE COMPETITION
Streaming media provider Netflix recently announced price increases in the U.S. as it prepares to invest in fresh programs and content.
All three of Netflix’s subscription plans will increase by at least $1. For example, the organization announced its standard $11 plan will rise to $13 per month after March.
“I remember how Netflix was just a company that focused solely on renting DVDs and streaming was just an afterthought,” said Niles Cooper, junior. “Now, their main focus is clearly the quality of streaming.”
The price increase will be applied to existing member accounts beginning in April, and new streaming members will be charged with the new prices immediately.
Netflix has indicated it will spend billions of dollars on new content, an expansion from the $8 billion it spent in the most recent calendar year. Despite the price increase, the streaming service still expects to absorb roughly $2 billion in debt in the coming months.
“I don’t mind paying a little bit more for better streaming services,” said Justin Vaca, junior. “This is what makes Netflix so great; it sets them apart from the competition.”
Netflix’s spending seems to be paying off, though, as the company has more than 58 million subscribers around the nation and more than 137 million globally. These numbers exclude the thousands of additional subscribers watching Netflix on free trials.
With technology icons like Apple set to unveil streaming services of their own in the near future, Netflix is looking to differentiate itself from its competitors. The hope is that placing more funding behind content will forever separate the brand from other media providers.
In fact, some feel that Netflix’s prices have been far too low for quite a while. Many point to the five awards the company won at the most recent Golden Globes as additional proof that the service stands tall among other brands. With mega hits including Bird Box, Netflix has continued to corner the market of original content.
“I think the Netflix original films are better than the other content that they have to offer,” said Vaca. “If I need to pay more to continue watching amazing movies like Bird Box, so be it.”
While the jury remains out on Netflix’s price increase, the company’s intention to provide unique content seems clear. If its subscribers overlook the additional costs to remain loyal, the provider looks to continue dominating the streaming industry.
