Netflix Is Raising Prices Again To Feed Original Content Budget
Netflix is easily the most notable streaming video service out there and the thing that helps keeps it that way is the wealth of original programming that the network offers. Not only does it have a lot of original content including shows and movies, but that content it's typically VERY good. The downside to this expansive catalog of high quality original content is that it costs a lot of money to produce.
To cover the costs for making such good shows, Netflix has announced that it is increasing the price for higher tier subscriptions. Reports indicate that the $7.99 basic monthly plan is staying the same price for now. However, the Standard plan with HD content and two screens at once that most people subscribe to will see a price increase as will the Premium plan supporting four screens at once and Ultra HD content.
The Standard plan is currently $9.99 monthly and it will increase to $10.99 monthly. The premium tier plan will move from $11.99 to $13.99. Those certainly aren't massive price hikes and fans of shows like Stranger Things and House of Cards will probably not mind coughing up the extra cash.
Netflix issued a statement on the price increase that read, "From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster."
Ted Sarandos says Netflix content budget will be "closer to $7 billion" next year. 😱 #VFsummit— Sandra Gonzalez (@TheSandraG) October 3, 2017
The last price change for Netflix was all the way back in 2014 and people weren't happy. During that transition, people on the cheaper plan were grandfathered in and were allowed to keep paying $7.99. That extra money Netflix earns with price increases will be put towards a massive original content budget for 2018.
That budget was originally projected at $6 billion, but that figured is now reported to be close to $7 billion. That massive budget is for series, comedy specials, documentaries, and movies. Netflix's comedy specials haven't hit the mark for many, so hopefully the budget will be used mainly for cool shows like Stranger Things or Longmire (which is sadly being cancelled after season 6). If you want free Netflix, you can join T-Mobile One and get it bundled with your wireless service.