Netflix customers are getting hit with a price increase – for a second time in three years. Yet unlike the major pricing gaffe in 2011 that gave the streaming giant some unwanted bad publicity, this time Netflix will be smarter, and slower, with the process.
Users will now get more for their money. The Netflix price hike will be used (from $1-2 per month) to buy more content, both in quantity and quality. This is a big change of pace from the aforementioned blunder, where Netflix quickly raised prices by a drastic 60% while simultaneously cutting down programming. It’s been a long-time complaint, even among Netflix’s fervent customers, that the site’s programming choices leave much to be desired. A price increase (estimated to be more than $1 billion annually) will allow the company to invest in content that is newer, fresher and more entertaining.
Netflix did not give any specific dates as to when this increase will take place, but the absence of a time allows potential users to grandfather themselves into the $7.99 price. Eventually the price will go up for everybody, but Netflix isn’t sure when that would happen (it could be a year or two before they make the change).
Of course, people are upset about the increases, with many threatening to cancel memberships and complaints being thrown about that Netflix isn’t worth the money. But many of these people complained the first time around and did not leave, and it’s too early to tell if another increase will hurt Netflix. If they can hold their end of the bargain and improve their content selection, it may just make Netflix more attractive in the long run.