Netflix Price Increase

by | Apr 22, 2014 | Provider News, TV and Cable


Here we go again! It seems as though Netflix is hoping that a “second time is the charm” approach will work as they attempt to hike up prices again. The approach is somewhat different this time though as it will only affect new customers and is an increase of one to two dollars (depending on the country) compared to the past attempt at a six dollar increase.

The decision comes amongst the 4 million new members Netflix acquired in the first quarter of 2014 alone, which is more than their revenue and profit expectations had predicted. This higher-than-expected member increase bears the question if another attempt at increasing prices is a good idea considering the backlash that resulted in 2011’s attempt.

Besides trying a smaller increase for only new customers this time around, other factors that may affect the way customers view Netflix’s price increase include:

  • The recent roll out of a $6.99 plan for those who watch content on only one screen and;
  • The fact that the price increase is following fellow streaming service competitor Amazon Prime’s price increase to $99 a year.

Either way, it is a chance the company is willing to take.

Netflix also voiced its opinion on the potential Comcast and Time Warner Cable merger saying that Comcast is already a dominant competitor and therefore the company opposes the merger. Whether or not competitor opinions matter, a merger would definitely affect the TV industry and could possibly lead to more price hikes among TV service providers across the board (online streaming, cable and satellite).

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