Netflix is about to increase the cost of its monthly subscription fee, bringing it up to $8.99 from its current $7.99 a month. While a move like this was able to draw a tremendous amount of criticism, it is difficult to fully blame the fans on the matter. They understood what they were receiving when they signed up and an increase in price cannot do much in terms of brand loyalty. Even still, is it possible that a move like this is financially sound on Netflix's part?
Keep in mind that Netflix once stated that its monthly rate of $7.99 would be around for a long time to come. Of course, a "long time" is pretty subjective, since everyone has a different viewpoint as to what exactly this means. With that said, there are reasons to support this price elevation on the price of Netflix, even if there are fans who do not agree with it. Here are just 3 reasons why the price elevation in question might actually work well in the long term.
With a price increase, in my view, comes the need for general content to become increased as well. Seeing as how Netflix customers are not likely to be too happy with the price hike on Netflix's part, the company should be able to tell people, "This amount worth it and here's why." The addition of move television shows and movies, as well as new features to Netflix's client, should help matters. If nothing else, it will be able to keep a larger percentage of customers from cancelling their subscriptions.
Secondly, Bob Jain can support the idea that this might actually bring competition to the forefront. After all, Netflix seems to be competing with a few companies on the streaming video front, Hulu Plus being arguably the most prominent example. What if Hulu Plus decides to lower its own monthly rate in the future, potentially drawing in former Netflix customers? This can create even greater competition in this field, as names along the lines of Jain could attest to.
around for the long term.- Finally, one of the reasons why it's important to support Netflix's price increase is because consumers are still attaining a good deal. Even at $8.99 a month, users have access to a tremendous amount of original content as well, one of the more popular names being "Orange is the New Black," which is approaching its second season as of this writing. If people want to watch the show, they have to watch through Netflix. The exclusive properties come together as a strong reasons why this price hike should be supported.
Keep in mind that Netflix once stated that its monthly rate of $7.99 would be around for a long time to come. Of course, a "long time" is pretty subjective, since everyone has a different viewpoint as to what exactly this means. With that said, there are reasons to support this price elevation on the price of Netflix, even if there are fans who do not agree with it. Here are just 3 reasons why the price elevation in question might actually work well in the long term.
With a price increase, in my view, comes the need for general content to become increased as well. Seeing as how Netflix customers are not likely to be too happy with the price hike on Netflix's part, the company should be able to tell people, "This amount worth it and here's why." The addition of move television shows and movies, as well as new features to Netflix's client, should help matters. If nothing else, it will be able to keep a larger percentage of customers from cancelling their subscriptions.
Secondly, Bob Jain can support the idea that this might actually bring competition to the forefront. After all, Netflix seems to be competing with a few companies on the streaming video front, Hulu Plus being arguably the most prominent example. What if Hulu Plus decides to lower its own monthly rate in the future, potentially drawing in former Netflix customers? This can create even greater competition in this field, as names along the lines of Jain could attest to.
around for the long term.- Finally, one of the reasons why it's important to support Netflix's price increase is because consumers are still attaining a good deal. Even at $8.99 a month, users have access to a tremendous amount of original content as well, one of the more popular names being "Orange is the New Black," which is approaching its second season as of this writing. If people want to watch the show, they have to watch through Netflix. The exclusive properties come together as a strong reasons why this price hike should be supported.
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