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Netflix is Testing Even More Expensive Subscription Prices (bgr.com)
An anonymous reader shares a report: Every once in a while, we see Netflix test new plans in certain markets, and most of them involve price hikes. The same goes for the latest test that was spotted over in Italy, where the streaming giant is toying with a couple of different scenarios. First spotted by Italian-language blog SmartWorld, the tests suggest that Netflix is toying with the idea of either raising Standard and Premium subscription, or increasing all of its prices across the board.
Right now the default monthly Netflix streaming prices for Italy and other countries in the European Union are at Euro 7.99, or ~$9.1 (Base), Euro 10.99, or ~$12.5 (Standard), and Euro 13.99, or $16 (Premium). One of the tests that Netflix is currently conducting proposes that the Base subscription stays the same, but the Standard and Premium plans go up to Euro 12.99, or ~$14.8 and Euro 17.99, or ~$20.5 respectively.
Right now the default monthly Netflix streaming prices for Italy and other countries in the European Union are at Euro 7.99, or ~$9.1 (Base), Euro 10.99, or ~$12.5 (Standard), and Euro 13.99, or $16 (Premium). One of the tests that Netflix is currently conducting proposes that the Base subscription stays the same, but the Standard and Premium plans go up to Euro 12.99, or ~$14.8 and Euro 17.99, or ~$20.5 respectively.
I don't intrinsically mind my Netflix bill going up another buck or two a month; that's about in line with inflation when they started doing the streaming thing.
The bigger issue is that they're shifting, and while I get it, it's overall less compelling. They killed Blockbuster by allowing DVD rentals in the mail without any late fees. They pivoted toward streaming, because obviously that was the next logical step. Then, they started producing original content because it was starting to cost more in licensing to keep big-four movies in the list than it cost to produce their own, and with House of Cards and Orange Is The New Black turning out to be pretty popular, I certainly can't blame them for focusing more on original content than trying to license Hollywood blockbusters.
The problem is that as the third party content continues to wane, Netflix stops being Netflix and they end up just being the new HBO, while also competing with HBO, and Disney, and everyone else who wants a bigger slice of a smaller pie.
Now, there's enough good Netflix content across the spectrum for them to sustain an audience, and Netflix has already proven that they have a market for their original content.
The question is whether their original content is something most of their customers will be willing to pay more for, and while I think they are, I think that for Netflix to continue to grow as another-HBO-on-the-Internet, they're going to start to be doing it at the expense of the companies from whom they previously licensed content. It will be interesting whether Netflix starts beating Disney at their own game, or vice versa...because I submit that the lack of any Disney/Marvel/Star Wars content is going to be a bigger tell than a $2 rate hike.
"people were tired of that model and wanted a less immense set of content for far less money."
huh? No, no they don't. They want an immense set which includes all the good content from all the offerings for the price of any one of the offerings. Hell, I'd pay as much as $50 (without bullshit add on fees/taxes) for a one stop shop that includes streaming of all the new release movies (high grade remux quality) and commercial free shows including the premiums as well as sports with titles never disappearing from the catalog. The shows could even keep the commercials so long as everything is fast-forwardable.
The last thing I want is 14 little mini apps I have to hunt between looking for what I want each nickel and diming me and adding up to more than I paid for cable.