Netflix has publicly started a revolution that is allowing millions of people to transition from cable/satellite providers to streaming media. Of course, they are not the only company that offers streaming services. Hulu, Amazon Prime and other apps/services are also available. And it turns out that they all have more in common, beside just letting you get rid of cable and to stream lots of great content to your device of choice. It turns out that the streaming services are all becoming a bit more expensive. With Netflix being the most popular of all these services, it is no wonder that people are a bit surprised to find out that their Netflix subscription costs just went up a bit.
About two years ago Netflix began charging new subscribers $9.99 a month for their basic content streaming service. This service is essentially a plan that gives people the ability to stream HD content to two devices at the same time. People who were already subscribed to Netflix prior to two years ago, were paying $7.99 per month. Those same Netflix subscribers were grandfathered in under the new rates.
If you are somebody who has had Netflix for more than two years, you probably enjoyed knowing that you were paying a little bit less than some of those who were a little late coming to the party. Well, that all comes to an end, as of the beginning of May 2016. Subscribers who were paying the old $7.99 fee had to start paying $2 more each month. This is an increase that caught a lot of old-school Netflix users by surprise. This change does not take place immediately for everyone. Netflix delivered a first quarter earnings call and said that the “un-grandfather” process would start with newer customers in the beginning. Over the course of this year, everyone will start paying the higher fee, with the oldest subscribers being the last to do so. A survey was conducted and it concluded that the $24/year price increase would probably result in about 4 percent of current subscribers dropping Netflix service.
Streaming Costs Continue to Rise
Don’t think that it is only Netflix that is beginning to charge more; all the bit streaming services seem to be a bit more expensive than they were just a few years ago. Hulu offers a service that allows people to watch their favorite TV shows without commercials. The price for this little perk is $11.99 per month. This is compared to their “limited commercials” plan, which is just $7.99 per month. Amazon Prime streaming video service costs $99 a year, which comes up to just $8.25 a month. That makes this service the lowest priced of the major streaming services. And it also gives customers the perk of getting Prime Shipping on things that they buy, access to streaming music on the Amazon Music app and a few other perks.
It really comes down to supply and demand at this point. Streaming media is quickly becoming the most in-demand form of content delivery around. As such, the big players in this industry are kind of free to tweak prices to their liking for the time being. With more people opting out of traditional cable or satellite TV service, it appears that we’ll all have to deal with rising prices from the top streaming services, if we plan on still having access to our favorite programming, movies and content. It is important to close out on a high note here: Even paying a bit more for Netflix – at $9.99 a month – is still a heck of a lot more affordable than paying for the average cable or satellite TV package!
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