Connect with us

News

Netflix about to hike Subscription Fees for US Residents

Avatar

Published

on

Netflix

Netflix is going to raise the fees of the monthly subscription for the subscribers of the United States. They are going to raise it between 13 and 18% and it is the first subscription fee hike since 2017 for the company. The decision has been taken under the wake of the fact that the company has to spend a great amount for its original content as well as its international marketing. It has been estimated that after the hike, the monthly subscription for streaming on two screens at the same time would cost roughly around $12.99 or Rs. 920, per month.

The shares of the company has risen to a superb 6.5% to close at roughly $354.64 or Rs. 25,100, including the rise by 30% that have happened so far this year. Plus, the topmost plan of the company that allows four HD screens at a time is going to hike to $15.99 or Rs. 1,130. Currently, it is $13.99 per month, but the price scenario is going to change real soon. The basic plan of Netflix costs $7.99, but it is planned to rise to $8.99 or Rs. 640, approx.

On the other hand, HBO Now charges $14.99 or Rs. 1,060 approx each month, along with the no ad plan of Hulu which is priced at $11.99 or Rs. 850. Yet, as per the report of the analyst of Pivotal Research Group analyst, Jeff Wlodarczak, Netflix has the unique pricing power and still ends up remaining the cheap alternative entertainment source ever.

For quite some time, Netflix is perfectly dodging the competition thrown towards it by the fellow Amazon Prime, Hulu, and so on, and has already acquired 137 million subscribers. Plus, it is expected that this price hike would bring in hundreds of millions of dollars to the company. This would also help them to eliminate the expected debt level of $8.33 billion (2018) is believed it has, as per Synovus Trust Co, which holds 15,019 shares of Netflix.

Please follow and like us:
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending