If you're up in arms about the $2 price increase to everyones favorite streamer, I'm here to tell you that this is a bargain. In fact, consider it highway robbery that us consumers are getting away with on a daily basis. The fact is that nearly two years ago, Netflix announced a price increase to $9.99 for all new subscribers, while allowing grandfathered customers to remain at the $7.99 monthly price point. The company provided a transparent and fair warning that a price increase would be coming for all grandfathered subscribers within a two year window, and that day is finally here (almost). So in short, now all subscribers will be the $9.99 monthly fee.
Netflix has been creating original content for four years now, which as some of you may know, takes an exuberant amount of money. The cheapest episodes of House Of Cards or Orange Is The New Black run in the $4-5 Million Dollar range, amounting in upwards of $50 Million per season produced. After sticking their feet in the water with original programming and establishing credibility right off the bat, prices still remained fixed for subscribers.
Now with over a dozen original series and many more announced and on the way, something has to give in order to cover the production budgets of the shows you spend hours each week watching. Maybe we should avoid mentioning how many users are actually sharing one account (all my family members use mine). The price increase should provide an additional $34 Million in revenues per month moving forward, and should the company choose to crack down on account sharing they could take in even more revenue to help combat production costs.
So how can we argue, complain, or dare even cancel our subscription to a service that was transparent to begin with and did nothing but increase their value to consumers? When a new movie is released, individuals pay between $8-$16 per ticket depending on screening time and location to see it in first run theaters. Netflix provides dozens of hours of new content per month (if you don't believe it, just click the Originals tab) in addition to its revolving door of movies and series of old. So to you I say if you want to consume just the smallest fraction of their content, $9.99 is more than a fair price to pay, it's actually a gift.