Netflix went years without raising prices in the US, but then not too long ago, the service announced a $1 increase and despite the somewhat negligible amount, people freaked out. A sense of “is nothing sacred?” overcame the Netflix audience, and several of our readers commented that they’d even consider cancelling their subscription over this increase.
Netflix has announced again today that another price increase is coming. According to Mashable, the price increases will be $1 more for the most common tier of Netflix accounts, and a $2 increase for premium accounts. This makes these two plans $10.99 and $13.99 respectively. The most basic accounts will not be affected, staying at $7.99.
The general sense we get from our readers is that this is acceptable for now. The sentiment of this price change is definitely different than the sentiment of the previous one, with a more negative tone, and people generally not as likely to give Netflix a pass here. The library continues to shrink, only a handful of their growing library of original content is considered “must-watch,” so a price increase now seems like poor timing. Then again, $7 billion in content isn’t going to pay for itself.
We actually believe that these price increases rarely encourage people to actually cancel because of the price, but because they instead mark a good time to evaluate the value of a Netflix subscription. Many people instead cancel at these points because they notice the library continuing to shrink.