Updated 02:03 AM EST, Sat, Dec 04, 2021

Netflix Raises Price of Monthly Fee for Standard Streaming Plan By $1.00

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It's not much, but it's plenty: Bloomberg recently reported that streaming service Netflix is raising its monthly subscription fee by a dollar --- from $8.99 to $9.99 for new customers. This is hardly news: Slash Film noted that the company announced in July that a price hike was coming, but that it won't be too much.

Bloomberg also noted that existing customers will have a grace period of varying lengths before their prices go up. However, the increase does affect those whose plan lets two persons use the subscription at the same time. Prices will remain the same for those with so-called one-scree and four-screen plans.

The screening service has over 65 million subscribers worldwide, and it counting on customer gains to sustain their revenue growth as well as for the financing of its film and TV offerings: Bloomberg noted that it has $4.3 billion worth in programming costs in the next year and almost $5 billion more for the next few years.

Netflix had plans to expand into other territories as well, and already did so in a few territories including Australia, New Zealand, and Japan. (Tech Radar noted that these territories, where Netflix launched only earlier this year, will not be affected by the price hike yet).

Later in the month, it will also be available in Spain, Portugal and Italy. While the one-dollar mark-up may not seem like such a big deal, those who will decide to stop their subscription will not affect the company so much: their loss can be regained with the new subscribers from other parts of the globe.

There is a good point for the price increase, though. The more money there is for the company, the more they will spend on licensing for their library of TV Shows and movies. They will also have more budget for original programming: their original shows like "House of Cards", "Orange is the New Black" and "Daredevil" already made waves in entertainment.

Company founder and CEO Reed Hastings said as much, with Wired citing him from the July earnings call: "Over the last year, we've raised [average sales price] about 5 percent. We'd like to keep that moving. We're going to continue to have incentives for people to move up in the plans as suits their usage pattern, but we want to take it very slow. Things are going well, there's no reason to be disruptive."

He added, "Over the next decade, I think we will be able to have more and more content and add more value, and then to be able to price that appropriately."

Do you think Netflix's price increase is too much?

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