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Netflix is Raising Its Prices, Again (mashable.com)

Jason Abbruzzese, writing for Mashable: Get ready to pay just a bit more for your Netflix subscription. The streaming video service will be raising prices on its middle and top tier plans in the U.S. starting in November. Subscribers who currently pay for the standard $9.99 service will be charged $10.99. The price of the premium tier will rise from $11.99 to $13.99. Good news for people on the basic $7.99 plan -- that price is staying put, for now. The U.S.-only price hikes will begin to go into effect in November, varying depending on individuals' billing cycles. Starting on Oct. 19, subscribers will be notified and given at least 30 days notice about the increase.

4 of 277 comments (clear)

  1. Re:Premium subsidizing basic? by DarkOx · · Score: 4, Interesting

    Its called price discrimination. You create tiered offerings because you want to get charge the people the most who are willing to pay the most, while not being forced to turn away still profitable but lower contribution margin business.

    If you don't like it the correct way to protest is go down to the 7.99 tier. That is how you tell NetFlix you like the service overall but don't place the same premium on premium service that they do. If enough people do it; the result will be they either raise rates on the bottom tier to hit the revenue goals while making a perhaps slightly cheaper premium tier seem like a better decision at the margin for consumers, or go back to a single class of service.

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  2. Re:Less streaming content and higher price? by squiggleslash · · Score: 4, Interesting

    Yup. Netflix is loss making, so the idea they might still need to raise prices while they offer a slightly worse service is not contradictory. The question is whether people are willing to pay more.

    My guess is yes. But I suspect Netflix would be more successful if they added as much content as possible and doubled their prices, rather than doing what they're doing. It's better to get people the product they want to pay for, and charge them what it costs, than to offer something half assed.

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  3. Go back to 2 streams and bypass the limit. by bryan314 · · Score: 3, Interesting

    If you device supports downloading just download the program. It by passes the 2/4 streamming limit. You can download a show while other family members are watching the other streams. And watching downloaded programs don't count towards streams. Leave the 2 streams for devices that can't download. Learn this one when me and my kids were fighting over the 2 streams.

  4. Re:Still better than cable by Captain+Splendid · · Score: 2, Interesting

    It doesn't take up much time, true, but it certainly does pull me out of the show quite often.

    Yeah, how dare my favourite character take a swig from a red Coke can instead of a fuschia Cooke can. Took me right out!

    There are numerous shows that I had to stop watching altogether because the product placement was far too disruptive.

    Do tell.

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