Netflix Inc. has some changes in store for its clients. The decision concerns price tiers exclusively. As of consequence, the most famous video streaming plan will experience a 10% rise in value. The company hopes to gain higher capital. This way, it can deliver more TV shows that Netflix subscribers can binge watch than rivals HBO, Amazon, and others.
Netflix Subscribers Will Benefit New TV Shows, Films, Improved Resolution for The Price Hike
On Thursday, Netflix delivered some news that would affect most of its 53 million clients in the U.S. The company plans to start the month of November with price increases. This move risks affecting the popularity the platform enjoys.
On the other hand, the same strategy will support the costly efforts to deliver quality content in large quantities. This key drive helped Netflix become a much-requested service over recent years. On top of that, this is the first price increase the company applied in two years.
Therefore, while the basic plan will remain unchanged, the standard and premium tiers will cost $11 and $14 respectively per month. The updated pricing system is already working for new subscribers. However, old customers will start supporting the price increases as of next month.
“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies.”
The statement of the company suggests that clients will receive their money’s worth for sure. Netflix is planning on additional movies and TV series to enrich its already generous catalog. On top of that, it is going to offer a 4K resolution to premium Netflix subscribers.
Apple and Viacom Are Latest Players in an Overcrowded Market
The change comes at a time when the streaming video market risks to become overcrowded. More and more companies started showing interest in locking in consumers’ entertainment budget. However, this capital is usually of modest dimensions.
Therefore, each offer has to be well targeted or generous enough in order to appeal to potential customers better. Walt Disney has already abandoned Netflix in the hope of making it on its own.
As of recently, Apple and Viacom announced that they are going to join this race. Each of them is working on their own online TV offers. Their competitive edge focuses more on video quality. Viewers will have the added benefit of a 4k Ultra High Definition for instance if they concede to break loose from their first brands.
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