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Netflix is Raising Rates –

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Netflix is Raising Rates –
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Netflix is raising rates. Insiders informed Mashable this week that starting in November, subscribers of the company’s $10 per month service will be charged $11 per month, and subscribers of the company’s premium tier (which allows for four simultaneous streams) will be charged $14 per month, up from $12. The report indicates that subscribers should be formally alerted by Netflix on October 19, with at least thirty-days notice before the higher rates take effect.


“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster,” Netflix said of the latest hike.

While consumers won’t like the price increase, and many have complained about Netflix’sshrinking catalog, most have indicated they still see Netflix as a good value, especially when compared to the price of traditional cable.

In fact,one study last year indicated that 21% of Netflix customers said they would pay $16 or more per month for the streaming service. That said, Netflix can’t push its luck, either; the same survey also found that 29.3% would prefer to pay any more than they do now, while 39.1% of those surveyed said they would pay $12-$15 per month, at most.

Again though, Netflix’s leg room is in large part thanks to users tired of paying too much for bloated, traditional cable TV bundles. The same survey found that roughly 35% of consumers pay $100 or more on cable or satellite TV per month; 49% pay $51-$100 per month; 16% said they spend less than $50 on pay TV. And as most readers are well aware, those price hikes show no sign of slowing despite the growing pressure from cord cutters
fleeing to alternative services .

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