Netflix CEO Warns that a Price Increase is Coming in the Future

[dgstorm]

Most of the time, the news we get to report is pretty cool. Unfortunately, sometimes we "get" to report the bad news too. Today we are faced with that task again. Without giving any specifics, Netflix' CEO Reed Hastings announced to investors that the company plans to "carefully push" consumers toward a higher price model in the coming years.

This is executive parlance for "we are going to raise prices." Here's a quote with more of the details,

Netflix may be less tolerant of widespread password sharing in the near future. The company has a one-stream, standard-definition package priced at $7.99 a month, but “we also want to motivate people to move up to the two-stream and the high-def and the ultra-high-def”, Hastings said, though he didn’t elaborate on what the incentives to switch plans would be.

Prices of current subscriptions won’t change this quarter, but Hastings said prices will increase over the next decade.

“We want to take it very slow,” Hastings said. “Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately.”

Hmmm... whether consumers take kindly to these eventual price increases depends on how large they will be. Netflix has been creating some solid unique content lately, and they plan to spend $1 Billion or more on new shows next year, so perhaps it will be worth it. It also sounds like they will roll out these higher prices a very slow rate, so perhaps it won't be too bad. Discuss your point of view.

Source: The Guardian

 

[cr6]

Sounds reasonable to me. I've been paying the same price for years and I'll be more than happy to pay an extra dollar or two over the next decade, just so long as they continue releasing great ad-free content. 75-80% of all our tv viewing these days is through Netflix. We've found dozens of series, just over the past year alone, that we would have never found otherwise.
With all of their exclusive content, including more and more 5.1HD and 4K programming being offered, Netflix continues to knock it out of the park IMO.

S5 tap'n

 

[DroidModderX]

Over the next decade to me sounds like they are hoping to achieve like a full new release experience. If I could get all the movies as soon as they come out on DVD I'd be happy to pay $25 a month. I would be happy to pay $75 a month if they could stream movies from the theater.

 

[realged13]

I have no problem with this. They've managed to keep the price reasonable for a long time. I just wish they had some newer content and would be fine with a $10-15 increase if that was the cost.

 

[cereal killer]

Over the next decade to me sounds like they are hoping to achieve like a full new release experience. If I could get all the movies as soon as they come out on DVD I'd be happy to pay $25 a month. I would be happy to pay $75 a month if they could stream movies from the theater.

Oh you can bet the day will come that when a film is released in theatre's you'll be able to get it at home as well. Whether its Netflix or some other competitor, I'm certain those days are coming.

 

[94lt1]

Oh you can bet the day will come that when a film is released in theatre's you'll be able to get it at home as well. Whether its Netflix or some other competitor, I'm certain those days are coming.

They've actually already had movies like that a few years ago..they were available on dtv ppv the same day they were released in theaters...as I recall it was some animated movie...because my son just had to see it...

 

[shockracer]

What they offer and continue to offer more and more with zero price increases for me. I would gladly pay a little more! It seems they are trying there hardest to keep from increasing prices, I applaud them for that!

 

[cereal killer]

They've actually already had movies like that a few years ago..they were available on dtv ppv the same day they were released in theaters...as I recall it was some animated movie...because my son just had to see it...

I'm talking about all the films seeing a Theatrical release not just a few obscure ones. Blockbusters and all....

 

[94lt1]

I'm talking about all the films seeing a Theatrical release not just a few obscure ones. Blockbusters and all....

I follow..every movie ..released to the home viewing audience at the same time as the theatre audience...I bet that'd increase their revenue..I hate going to theatres . so I'd definitely be all in..

 

[cybertec69]

I'm talking about all the films seeing a Theatrical release not just a few obscure ones. Blockbusters and all....

That will not happen anytime soon, as movie houses have deals with the movie studios, and the movie studios will not go for it.

 

[Ollie]

I'm not fine with this. They have a pretty poor selection to begin with. Even if they add more of their own in house productions it won't be enough to justify charging more for a library full of B movies.

They are still being charged for the now illegal fast lanes on the internet. We will foot the bill.

 

[kodiak799]

I'd be happy to pay $25 a month. I would be happy to pay $75 a month if they could stream movies from the theater.

So would a lot of people. But you have to realize MANY people still fork over $15+ for a movie ticket, $20+ for the DVD, and even about $6 for the OnDemand. The economics of the model you suggested will never work because the studios would lose tens of millions on each of the popular movies..

What I would like to see is the option to watch a new movie in theaters on Netflix for $15, or to stream popular new releases for $6 like I do thru my cable OnDemand.

 

[kodiak799]

I'm not fine with this. They have a pretty poor selection to begin with. Even if they add more of their own in house productions it won't be enough to justify charging more for a library full of B movies.

It's gotten better, particularly strong on tv series. But I mostly agree with you - I pay it because when I can't find anything else to watch, I can usually dig-up something interesting on Netflix. For $8/month, I feel like I get my money's worth.

If that starts creeping up to $12-$15....well, kind of like HBO and other premium channels I think Netflix starts pushing people to subscribe for a few months, watch/catch-up and then end it. If I want to binge-watch a show, maybe I get Netflix for a month.

But, yeah, I sometimes go weeks without firing up my Netflix.

 

[cr6]

We never have a problem finding something good to watch on Netflix. It's our main programming source at least 5 days out of the week. I think they have a great selection and they regularly add to it every month. Sure, their new release blockbuster movies are extremely limited, but that has never been their strong suit. But with tv series & documentaries, they do really well. Throw in some awesome original programming, and I think it's well worth the money. I would advise to those who think their isn't anything to watch on Netflix, go back into your settings & reformat the various movie & tv show genre & subgenre's. This will update your main page to show much more content. We got rid of cable over 2 years ago and haven't had extended cable for about 5, so we've found some pretty cool series that we never knew existed. We definitely get our money's worth.


S5 tap'n

 

[UrbanBounca]

Unfortunately, I agree with @Ollie on all this. They have a few good selections, but overall, they add pretty bad content anymore. Luckily, my girlfriend is fitting the Netflix bill, because I'm not sure I would be as willing.