Netflix raises prices in US and other countries
The world's largest VoD provider has increased the price of all its packages guaranteeing access to the library of films and popular series by several percent. The increases has not reached Europe yet.
A year has passed since the last changes in subscriptions plans for the worldwide popular service. This time Netflix increases its subscription prices by several percent.
Until now, Americans paid $8 a month for the basic Netflix package, enabling them to watch all the films and series available in the offer on one device and in standard quality. Access to HD quality and simultaneous viewing on two devices used to cost 11 dollars, while 4K resolution for selected titles and the option to use four devices at the same time was available for 14 dollars. According to the Seattle Times, from now on new users will pay $9 (one dollar more) for the cheapest package, $13 ($2 more) for the HD plan, and $16 (also $2 more) for the Premium option. Existing subscribers will receive an increase within the next three months.
The price increases are expected to halt the increase in the platform's debts, which are being contracted in order to maintain its leading position against the ever-growing competition and which are currently estimated at 14 billion dollars. Netflix invests in new productions, thanks to which it can boast the largest library of its own series and films, which include such high-profile titles as Orange is the New Black, House of Cards or Stranger Things. Nevertheless, the platform still feels the competition in the form of Amazon Prime Video and Hulu. In addition, this year's race for the throne of VoD will be joined by more powerful players - Warner Bros. concern AT&T and for a long time armed to fight Disney. The Netflix movement was positively received by investors - after announcing the increases, the company's shares rose by 6.5%.
