Netflix said it learned a lot of lessons about how to best roll out price increases after an unpopular increase was carried out in 2016.
"Media companies becoming more stringent on where content is licensed and rising content costs in the peak TV era could also explain the price increase".
Netflix devotees get ready to pay more. If you see "2 Screens + HD" or "4 Screens + Ultra HD", that means your bill will be going up next month, either by $1 or $2 respectively.
Luckily, the price hike won't affect most Netflix subscribers and it's quite a small increase for those affected. Current subscribers will be notified starting on October 19, and then will become effective at the start of their next bill cycle. The company's chief content officer Ted Sarandos recently confirmed that Netflix will spend $7 billion on content next year. Without support from advertisements, Netflix needs the price hike to help defray the cost of producing this content.
With Disney and others pulling content off Netflix, the video streamer has been one of the leaders in its industry when it comes to producing its own material.
The price change is the first increase by Netflix in two years. Back in 2011, the company saw hundreds of thousands of customers drop its service after it said it would no longer include streaming and DVD rentals in a single subscription.
According to Business Insider, the lowest-tier plan will remain unchanged. "We think that Netflix is destined to be a cash-burning, high-growth company until it changes its strategy and accepts its fate as a highly profitable slow-growth company".
It's understandable that people would be upset over price increases, but these probably aren't the last ones that consumers will have to deal with.