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Netflix Plans To Raise Prices By "$1 or $2 a Month"
New submitter Burphytez (3625571) writes with this excerpt of a Reuters story, as carried by the Chicago Tribune: "Video streaming service Netflix Inc said it intends to raise the monthly subscription price for new customers by $1 or $2 a month to help the company buy more movies and TV shows and improve service for its 48 million global subscribers. Investors welcomed the announcement by Netflix, which had suffered from a consumer exodus and stock plunge after it announced an unpopular price increase in July 2011. The company's shares jumped 6.7 percent in after-hours trading to $371.97, after the company released plans for a price hike and posted a rise in first-quarter profit that beat Wall Street expectations."
While as a consumer I'll bemoan paying more, the reality is, to deliver quality content they need to find the price sweet spot. It's still way below the cost of cable TV, so I don't think it will hurt them in the long run.
Yes, it seems like it will mainly benefit shareholders, but with the lack of ads and low price, even after the increase, who can really complain?
From TFS, "Netflix Inc said it intends to raise the monthly subscription price for new customers by $1 or $2 a month..."
Unless my reading comprehension is on the blink, as a current customer, you shouldn't see a rate increase. Yet.
"Video streaming service Netflix Inc said it intends to raise the monthly subscription price for new customers by $1 or $2 a month to help the company pay ransom to the ISP monopolies with stranglehold on the last mile of cable built by the rate payers over theyear on public rights of way, protected by the public utilities commissions, who wantonly flout truth-in-labeling laws by selling X Mbps service and balk at providing it.
FIFY
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
more like the content costs
if you look at their financials 3/4 of revenues goes to pay for content. networking costs are maybe 1/10 of revenues