Though it took Netflix a couple of years to get grandfathered users up to the $10.99 tier, the process of raising prices won’t be almost as long this time around. The streaming video on demand leader announced another price increase for its most popular plans.
Netflix confirmed the price increase plan to Business Insider’s Nathan McAlone in a statement.
The two-screen high definition subscription plan will go up $1 in cost per month. The company is betting on a growth strategy that relies on original content. Netflix also recently invested 0 million in a permanent Canadian production presence.
Still, despite the price increase, Netflix will remain a much better deal than cable in terms of viewing time. If Netflix ups its price by £1 every 6-12 months then it might start seeing something of a backlash.
Reportedly, the price increases were due to the service adding more original content, along with introducing new product features and improvements. And it could be argued that with the wide array of quality content coming from Netflix, participants of the subscription are still getting a hell of a deal over traditional cable packages. It will be exactly two years in November this year, when this new price hike will be implemented. When the bulk of that process happened a year ago, media and public chatter rose to such a degree that Netflix blamed it for a missed quarter of subscriber growth. The last time the streaming service had changed its Netflix plans was two years ago and it seemed about time for the company to make its plans pricier. As of the end of June, the company had about 52 million US streaming members.