![]() ![]() customers as of the end the third quarter of 2018, with a worldwide total of 137.1 million streaming members. The exact timing will depend on a specific member’s billing cycle. 17.Īccording to Netflix, existing members will be notified by email and within the Netflix app 30 days before the new prices are applied to their accounts. Netflix is scheduled to report Q4 2018 results on Thursday, Jan. It remains to be seen how the new price increases affect subscriber growth heading into 2019. Netflix last raised rates in the fourth quarter of 2017 - two years after its previous hike - and faced minimal cancellations and no slowdown in net subscriber additions. It’s also continuing to burn cash, and most recently projected negative cash flow of more than $3 billion for 2018 (versus negative free cash flow of $2 billion a year prior). 30, up from $6.50 billion at the end of 2017. To fund its content-spending binge, Netflix has raised billions in new debt: It reported $8.34 billion in long-term debt as of Sept. The company is looking to boost top-line revenue to offset its ballooning content costs, which were projected to hit $13 billion on a gross basis in 2018. Netflix shares rose up as much as 6.8% in morning trading Tuesday on news of the price increases, with investors bullish on the evidence of its growing market clout. “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” a company spokeswoman said in a statement. However, the rate hikes will not take effect (for now) in the region’s biggest markets, Mexico and Brazil. dollars, including Uruguay, Barbados, and Belize. ![]() Netflix’s price increases also will extend to about 40 countries in Latin America where it bills in U.S. Existing subscribers will be moved to the new pricing plans “over the next few months,” according to the company. The new prices, which are the biggest fee hikes in Netflix’s history, will apply to all new Netflix subscribers in the U.S. In addition, the company for the first time is hiking its Basic plan, which offers a single non-HD stream, from $7.99 to $8.99 per month (+12.5%). The Premium plan, which provides up to four Ultra HD streams, is increasing from $13.99 to $15.99 per month (up 14.3%). ![]() Netflix’s most popular plan, the Standard tier that offers two HD streams, is increasing 18%, from $10.99 to $12.99 per month. While costs are becoming a deterrent, consumers also now face the problem of being overwhelmed by the number of options and a complicated system to figure out how to watch them.Netflix is flexing its pricing-power muscle to kick off 2019 - hiking fees for all streaming-video plans for customers in the U.S. I don't know why consumers were gullible enough to believe that." More than just costs "The price for watching everything was never gonna be $10 a month forever. "The biggest advantage of streaming is on-demand content, and that is something that always sucked about cable - that you had to watch something on the network's schedule, and you couldn't watch it as many times as you wanted," he told CBC News in an email. Torontonian Syed Raza uses a half dozen streaming services, and even at roughly $50 a month, he says it's still a better bang for his buck than cable. Others say despite higher prices, streaming is still a good value. We're not usually paying for more than one at a time." "We have for a few months, watch what we're gonna watch, maybe use Crave for a couple of months, then go get Amazon Prime, that sort of thing. "Usually, we'll have one at a time," Andrew Hiscock of Mt. Netflix adds 10 million new subscribers in 3 months but warns new sign-ups will slowįor some consumers, keeping a lid on rising costs means being choosy about what to sign up for - and for how long.Netflix hints at plans to stream video games as subscriber growth slows to a crawl.
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