Netflix is reportedly going to continue to raise its subscription prices, but is waiting a while until new content is produced.
According to (paywall, unfortunately) the Wall Street Journal, another price increase is on the cards for Netflix subscribers. What-Hifi reports that it has everything to do with the prolonged writers’ strike in Hollywood. Since that is now over, new content can be created at lightning speed. In a month or so, when the library has expanded substantially with enticing wares, the price will then be thrown up at Netflix. In doing so, the company obviously hopes to retain its customers because they can’t say “no” to the lure.
Upper limit reached?
Problem is that Netflix is rather price-determining for the other video streamers. Which means there will undoubtedly be subsequent increases at the other household names like Disney , Apple TV and Amazon Prime Video. As we have written before: the cost of streaming is going to go up substantially. Meanwhile, the first signs of those price increases may already be visible: illegal downloading within the EU is cautiously but steadily increasing again. If the streaming bubble bursts, however, this time film and record companies can only turn a blind eye. You cannot milk customers indefinitely; there is clearly an upper limit to what people are willing to pay for streaming. If you exceed it, a plunge into illegal downloads will follow.