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It’s been almost two years since Netflix last increased its prices for U.S. customers, pushing the standard subscription to $9.99. The move was unpopular but didn’t do much to dent the company’s impressive growth.
Since then, Netflix has shown its true ambition to become the first truly global entertainment mega power. It launched aggressively into international markets and firmly established itself as a major player in the highest echelons of Hollywood, with the budget to match.
Consumers, however, will need to be convinced that any price hike will mean more and better content at a time when Netflix is starting to receive blowback from consumers about its library.
The average Netflix viewer consumes about 93 minutes per day, based on an analysis of the company’s metrics . That means the average person on a standard $9.99 per month plan gets a bit over four hours of high-quality, on-demand entertainment for one dollar.
Add on the fact that Netflix is spending billions of dollars on new shows and introducing new features like interactive content and downloads.
The company declined to comment on when consumers in the U.S. could see another price increase. The company spends plenty of money but makes a healthy amount in return. It’s main priority right now is now is adding more subscribers, not squeezing every last penny from its existing subscribers. And it hasn’t been that long since the last price increase.
And there’s a simple case that Netflix should raise prices just because it could. Netflix’s price increase hardly seemed to stymie its growth or drive away existing subscribers.
The company is also battling a growing feeling from some subscribers that the service’s library has become laden with filler rather than major movies and new TV shows. Media companies that were once happy to sell streaming rights to Netflix are now exploring other options. A major blow will come in the form of Disney, which will be pulling its library from Netflix once their contracts ends in 2019.
It’s a sentiment that could prove difficult to overcome despite the company’s introduction of new features and original content.
Getting three DVDs by the mail from Netflix used to cost $16.99 per month back in 2007. Netflix’s standard streaming service now costs $9.99 per month.