Netflix raising subscription costs
Company prioritizing original content
One of the most popular streaming services, Netflix, just announced that they will be raising their prices across the United States for new subscribers, and existing users should expect to see their bills begin to rise over the next three months.
When it comes down to how this will affect college students, a study done by LendEDU, an online marketplace, reports that 92 percent of college students use Netflix. Out of the 92 percent, 34 percent owned their own account. The other 53 percent of those students were using a family member’s or friend’s account, while 5 percent were using their current or former significant other’s account. Therefore, when it comes to the price hike, the dollar rise in subscriptions plans will only be hitting about 31 percent of college students’ wallets.
As Netflix begins to raise its subscription prices, each of its plans will see around a dollar to a two-dollar raise for basic, standard, and premium plans. The biggest reason for Netflix’s price hike is that the company wants to keep creating new and original content, like Stranger Things, Orange is the New Black, and Bird Box.
When asked about Netflix’s price hike, Hailey Russell, a sophomore studying theater, film, and television said, “I do think [the price hike] is fair and it makes sense. Considering the price increase is only a dollar more, I don’t think it’s that big of a deal.”
Netflix’s decision to raise their prices should not come as a surprise to customers because this is the fourth time the company has done so since the streaming service first began. In fact, in a statement to USA Today, a spokesperson for Netflix said, “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members.”
Additionally, with many different streaming services popping up, like Hulu, Amazon Prime Video, and new services coming in 2019 from Apple and Disney, it isn’t a surprise that Netflix wants to compete with the other streaming services by prioritizing original context. But for many of the younger generations, a dollar rise probably wouldn’t affect whether they unsubscribe to the services.
A study done by the Pew Research Center reported that “About six-in-10 of those ages 18 to 29 (61 percent) say the primary way they watch television now is with streaming services on the internet, compared with 31 percent who say they mostly watch via a cable or satellite subscription, and 5 percent who mainly watch with a digital antenna.”
CU Denver student Hailey Russell added, “Netflix is a powerhouse of a distribution company. They create more original content than other platforms and they have surpassed many TV cable networks. And what’s more is that most of the content that they create is actually good. If the price increase keeps shows from being canceled, then so be it.”