Netflix has come out with an official statement regarding a hike in the subscription fees for its US subscribers within the range of 13 percent, and 18 percent as effective boundaries. It is the first increase in price since the year 2017 when the company sought to revitalize their services, as well as content. The Streaming Service has been heavily involved in creating lots of quality original content like Stranger Things, Black Mirror, etc.
The price of the standard plan has increased from $10.99 to $12.99 to be made applicable just after a few days. This was announced by the company officially, and there has also been an increase in the premium plans of the service from $13.99 to $15.99 respectively. This comes at the heels of the announcement that Netflix stocks have seen a rise of about 6.5 percent in the fiscal year of 2018, bringing their value at a high watermark in company’s history at $354.60. In terms of its competitors, however, the company has left no expense fared to counter the rise of its most immediate competitors, namely Amazon Prime and Hulu.
Netflix’s basic plan has also seen an increase to $8.99 from $7.99 in the past. Critics are praising the decision of increasing the price for subscription as being implemented during the opportune moment. Still, the respective amounts of price range exerted by Netflix are quite less than almost all of its actual competitors. The company has stated that it had nearly 137 million subscribers at the end of September and has invested nearly billions in terms of their overarching growth plan.
As a result, these hikes in subscription should supposedly bring Netflix revenues totaling to the upper limit of hundreds of millions every month. But, the issue continues to persist, as the company’s running debt is running in some billions of dollars. This debt figure almost doubled from 2016 to 2017, as well as finalizing at a humungous 8.3 billion in 2018, according to many reports.