It was reported, some time ago, that Netflix would be increasing its subscription fee. Once a service that went for $7.99 on a monthly basis, it will soon go up to $8.99 every month. It was a move that drew the ire of a number of Netflix supporters and it is understandable as to why. Many consumers have been loyal to the brand and a move like this, at least at the onset, does not seem to be appealing. However, is it possible that this move is actually for the best?
Keep in mind that Netflix once stated that its monthly rate of $7.99 would be around for a long time to come. Of course, a "long time" is pretty subjective, since everyone has a different viewpoint as to what exactly this means. With that said, there are reasons to support this price elevation on the price of Netflix, even if there are fans who do not agree with it. Here are just 3 reasons why the price elevation in question might actually work well in the long term.
With a price increase, in my view, comes the need for general content to become increased as well. Seeing as how Netflix customers are not likely to be too happy with the price hike on Netflix's part, the company should be able to tell people, "This amount worth it and here's why." The addition of move television shows and movies, as well as new features to Netflix's client, should help matters. If nothing else, it will be able to keep a larger percentage of customers from cancelling their subscriptions.
Bob Jain can also attest to the idea that this could be the catalyst for competition to come to the forefront. Netflix seems to have a few competitors already - Hulu Plus comes to mind - but many of them have not been able to rise to the level of Netflix for one reason or another. It is up to these companies to now offer strong services without having to sacrifice the matter of cost. I believe that various names in finance, Jain included, can agree that this will create healthy competition that consumers can benefit from.
Even though Netflix is raising its monthly fee by a dollar, it's clear that there is still a good deal to be had. Along with various movies and television shows at $8.99 a month, there is a wealth of exclusive content that is hard to ignore. "Orange is the New Black" comes to mind immediately, especially with the show approaching its second season. I believe that it is because of exclusive properties along these lines that Netflix's price elevation will be that much more worth it.
Keep in mind that Netflix once stated that its monthly rate of $7.99 would be around for a long time to come. Of course, a "long time" is pretty subjective, since everyone has a different viewpoint as to what exactly this means. With that said, there are reasons to support this price elevation on the price of Netflix, even if there are fans who do not agree with it. Here are just 3 reasons why the price elevation in question might actually work well in the long term.
With a price increase, in my view, comes the need for general content to become increased as well. Seeing as how Netflix customers are not likely to be too happy with the price hike on Netflix's part, the company should be able to tell people, "This amount worth it and here's why." The addition of move television shows and movies, as well as new features to Netflix's client, should help matters. If nothing else, it will be able to keep a larger percentage of customers from cancelling their subscriptions.
Bob Jain can also attest to the idea that this could be the catalyst for competition to come to the forefront. Netflix seems to have a few competitors already - Hulu Plus comes to mind - but many of them have not been able to rise to the level of Netflix for one reason or another. It is up to these companies to now offer strong services without having to sacrifice the matter of cost. I believe that various names in finance, Jain included, can agree that this will create healthy competition that consumers can benefit from.
Even though Netflix is raising its monthly fee by a dollar, it's clear that there is still a good deal to be had. Along with various movies and television shows at $8.99 a month, there is a wealth of exclusive content that is hard to ignore. "Orange is the New Black" comes to mind immediately, especially with the show approaching its second season. I believe that it is because of exclusive properties along these lines that Netflix's price elevation will be that much more worth it.
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