The monthly subscription fees for new Netflix users is going up $1 to $2, the company recently announced – stock prices went up 6.5% shortly after the news came out.
Both new Canadian and American subscribers will feel the pinch. However, existing subscribers will also see a hike in the next two years.
“We have greatly improved our content selection since we introduced our streaming plan in 2010 at $7.99 US per month. Our current view is to do a $1 or $2 increase, depending on the country, later this quarter for new members only,” a company letter said (CBC News).
“We’re committing to larger budget shows, not that the same show is more expensive to make year-on-year,” said Ted Sarandos, Netflix’s chief content officer (canada.com). “Think about it like a sports team where the bidding gets quite high on a couple of key pieces of talent, but the overall salaries, they are kind of in check.”
Photo: Netflix
