Netflix is one of the largest companies in the Internet domain dealing with Videos in the United States of America. The company announced today that they have increased he monthly charges for the new users by $1. This means that from Friday people who join the Netflix community will have to pay a monthly charge of $9 instead of the $8. There were rumors that Netflix was planning to increase the monthly charges. But there was no intimation about the amount that was going to be increased.
Although Netflix has already increased the monthly charges for the new users, people who are already subscribed with Netflix will not be required to pay $9. They have been exempted from the increase in the monthly charges till the year 2016.
This increases the yearly cost of Netflix from $95.88 to $107.88, and makes it more expensive than its competitors such as Hulu Plus and Amazon Prime Instant Video’s yearly cost of $95.88 and $99, respectively.
According to the experts, this is devised plan as it does not want to lose its customers for a price hike. Such an incident has already happened with Netflix and it’s good to see that they have learnt from their mistakes. Netflix has not revealed the increase in the monthly subscription for the existing customers that will take place after 2016.
According to the statement issued by Netflix, the price hike is t cope up with the need of Money. Netflix needs more money to bring in videos with even better quality. The new users will be able to enjoy the better quality videos right from the start where as the subscribed users might just have to wait for some time.
Netflix has already increased its prices in other parts of the world too. In April, the largest streaming service hiked €1.00 for Irish subscribers from €6.99 ( approx. $9.63 in USD) to €7.99 (approx. $11.01 in USD), that hasn’t made Netflix to either lose subscribers or increased profits, yet.
The popularity of Netflix has been growing all the way along since the backlash of 2011. Presently, Netflix has approximately about 13 million subscribers in more than 40 countries.
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