Like all businesses do, Netflix recently increased the subscription fee of its online streaming service for its users base in the US. Previously charged US$11 (~RM45), US subscribers will now have to pay US$13 (~RM53) in order to gain continued access to the same content.
While the US$2 increment will most certainly not break the bank, many have pointed out that the total amount of Netflix’s highest package is still cheaper than HBO’s plan in the US, which stands at US$15 (~RM61) a month. Additionally, the price increase will undoubtedly help Netflix to pay for more of its original shows and films.
Naturally, the price hike did have a positive effect on the value of Netflix, with its value having raised 6.5% per share on the stock market.
For now, the price hike only seems to be applicable to the US market. At the moment, it doesn’t look like Netflix has any plans of increasing the price for its subscription plans in Malaysia. If the price hike for its US market is any indication, however, it’s likely that any such action from the brand won’t be an unreasonable one either.
(Source: Associated Press)