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Netflix raising prices for 58M US subscribers as costs rise

By ABC News

Netflix is raising its U.S. prices by 13 percent to 18 percent, its biggest increase since the company launched its streaming service 12 years agoRead full story

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  • At some point, in order to continue raising prices (and ARPU), Netflix will likely price segment by adding pricing tiers or “packages.” In that context, you can consider Netflix as an MVPD that just happens to own all of its own “channels”

  • Max Lockie
    Max LockiePlatform Editor at Quartz

    $13/month is still a good value, but the closer that number gets to $20, the quicker we'll find out just how sticky their service really is.

  • Mike Murphy
    Mike MurphyTechnology Editor at Quartz

    This honestly may cause me to finally cancel. I feel like invariably, I log in, scroll through the list of Netflix-produced stuff and B-movies I have no interest in, and then end up turning off my TV altogether.

  • Andrew Schmidt
    Andrew SchmidtGraphic Designer at Horizon Group USA

    I’m very tempted to drop Netflix after hearing about this. A majority of their content is pretty bland as it stands. It’s convenient but increasing prices any further and they will be gambling their viewership away.

  • I was one of those who left in 2011 but came back eventually to streaming. I’m for sure gonna leave now. Right after the final season of “Peaky Blinders” and “Black Mirror” — whenever that may be. Yeah, for sure I’ll leave then.

    ...did I mention Ozark?

  • Casey Aitken
    Casey AitkenCreative Director at JWT INSIDE

    We’ll see if those Bird Box memes are really worth it.

  • Ronald Markham
    Ronald MarkhamEngineer at Amway

    Netflix continues to find niches to operate in. I am old enough to remember when Netflix would send you DVDs in the mail, to save a trip to the video shop. Eventually even a trip to the mailbox and a three day wait for your video became too much, and they started their streaming service, even when the technology of our infrastructure was just beginning to be able to support it.

    According to my kids, their original films and shows have become a large part of their entertainment. Their strategy to

    Netflix continues to find niches to operate in. I am old enough to remember when Netflix would send you DVDs in the mail, to save a trip to the video shop. Eventually even a trip to the mailbox and a three day wait for your video became too much, and they started their streaming service, even when the technology of our infrastructure was just beginning to be able to support it.

    According to my kids, their original films and shows have become a large part of their entertainment. Their strategy to dump a whole season on the net at once has become a household word - “binging”.

    Their price increase nets out at a few dollars, less than the cost of the pizza that we eat while watching.

    To me, it seems Netflix leaders have vision and know how to maneuver in their niche and to capture new ones.

  • Steven Rodas
    Steven RodasReporter at machineByte

    “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement.

    Hit movies aren’t the only parameter when measuring ‘improvement,’ correct?

    The PATH train (from NJ to NY) shouldn’t cost more because of the uptick in commuters.

  • Jing Cao
    Jing CaoQuartz

    "Higher prices could alienate subscribers and possibly even trigger a wave of cancelations. For instance, Netflix faced a huge backlash in 2011 when it unbundled video streaming from its older DVD-by-mail service, resulting in a 60 percent price increase for subscribers who wanted to keep both plans. Netflix lost 600,000 subscribers — about 2 percent of its total customers at the time — after that switch."

    And then proceeded to grow insanely and gain a ton of subscribers. Likely a lot of the 600k

    "Higher prices could alienate subscribers and possibly even trigger a wave of cancelations. For instance, Netflix faced a huge backlash in 2011 when it unbundled video streaming from its older DVD-by-mail service, resulting in a 60 percent price increase for subscribers who wanted to keep both plans. Netflix lost 600,000 subscribers — about 2 percent of its total customers at the time — after that switch."

    And then proceeded to grow insanely and gain a ton of subscribers. Likely a lot of the 600k lost are or were back at some point too.

    Pretty lame attempt at making a mountain out of a molehill imo, or at least comparing apples to oranges -- raising prices =/= company strategy pivot.

  • Nick Bann
    Nick Bann

    In order for Netflix to retain its consumer base it will need a lot more added to the service instead of just raising the prices. Wouldn’t mind seeing a big innovation with the Netflix platform and service

  • Michael Scorcia
    Michael ScorciaStudent

    Hopefully Netflix won’t continue to raise prices past $15 a month otherwise I can’t see that their audience will keep paying such a price

  • Rob Lee
    Rob LeeVP at Habitat for Humanity GTA

    I may start just rotating my subscriptions every 3-6 months. New content and i still get to catch up with new releases every few months. Could be an Amazon, Netflix and Crave kind of rotation.

  • Helen Edwards
    Helen EdwardsAlways curious at Koru Ventures

    Given how many consumer subscription or membership products are now subject to the “Netflix anchoring effect,” I guess we can expect many others to follow suit.

  • Phoebe Gavin
    Phoebe GavinGrowth Editor at Quartz

    Since I only use Netflix, Crunchyroll, and YouTube Red, I'm a lot less price sensitive than those trying to cobble together a more cable-like experience. But as major broadcasters try their hand at streaming services, I see a future where "traditional" cord cutters seek out a streaming equivalent of cable.

  • William Wood
    William WoodOwner at William Wood

    Bummer, but I’ll pay it. Should be a help, with this company, that is buried in debt and has failed to make a profit. It does not have the leverage a Disney has, with theaters and television, to support original content expenses. The company will either fall into the former enterprise trash bin, or like Amazon, will find other sources of revenue, until profitable. Any one have a coin to flip?

  • Patrick deHahn
    Patrick deHahnNews curator at Quartz

    I'll probably stick with Netflix as my brother and I split it -- although I haven't used it in about two months... and I logged on for the first time last night unable to find anything I wanted to watch.

  • Luckily, I’m in Japan.

  • Ron Jacobs
    Ron JacobsRetired General Counsel of NYSE traded Corp

    Bird Brain. They put on their blindfolds to consumer prices. When they take the blindfold off, they may find far fewer subscribers.

    The Skinny Bundle - NFLX, Hulu, Prime, HBO, SHO,STRZ add up to a pricey bundle. Makes Comcast big bundle appear to be a bargain.

  • Michael Wofford
    Michael WoffordRN

    I rarely find any movie I look for, in fact, when it comes to finding movies, Netflix is the worse.Their algorithms that try to predict your "likes" seems a dumb strategy. It limits your ability to find new stuff, once you've seen all the stuff you quick scan, there's no reason to keep looking. I won't go digging for it. I think Netflix is doomed. Pretty soon every movie/show you want will be available from Amazon. It will be a simple type in title, watch the movie (prediction). Try that with Netflix

    I rarely find any movie I look for, in fact, when it comes to finding movies, Netflix is the worse.Their algorithms that try to predict your "likes" seems a dumb strategy. It limits your ability to find new stuff, once you've seen all the stuff you quick scan, there's no reason to keep looking. I won't go digging for it. I think Netflix is doomed. Pretty soon every movie/show you want will be available from Amazon. It will be a simple type in title, watch the movie (prediction). Try that with Netflix.

    Just because the stock market makes Netflix investment successful, and your making monies off it, doesn't mean you're getting a superior product.

    I'll probably drop it.

  • Katherine Ellen Foley
    Katherine Ellen Foleyhealth/science reporter at Quartz

    I’m actually more willing to pay the extra $2/month now that I’ve seen all that Netflix has done. I can see where this extra money is going — it doesn’t seem like an arbitrary change

  • Kirlene Cowan
    Kirlene CowanTeacher at Gov't.vc

    When it gets too expensive I definitely won't be needing Netflix! Its something I can do without!

  • Henry Tobias Jones
    Henry Tobias JonesEditor of Dyson on: at Dyson

    The beast needs feeding.

  • As long as there are pricier options, Netflix will get away with it. If they were a second tier content provider, I would say that this price hike would hurt them but being Netflix, the pioneer and content leader, people will stay put.

  • De’Andre Crenshaw
    De’Andre CrenshawRetail Managment at CVS Pharmacy

    Ill probably stay with Netflix like everyone else complaint about cost increases because it’s so convenient, but they really should work on their system if they keep increasing. They algorithm that pics the movies you might like is off and there old game show picker of the max was a good attempt at that. With a few tweets and Netflix originals it’s worth the increase.

  • Tom Schieffer
    Tom Schieffer

    I dont mind a small price increase but would like more adult content. Most shows are pretty bland.

  • Tarek Ramadan
    Tarek RamadanVP at Foam Industries

    I think the content convenience depends on region alternatives. For example, in some countries, you pay $20 just for regular TV channels while others have FTA ones. However, as it is mentioned earlier in the thread, the closer it comes to $20, the more people will be turned off.

  • John Commons
    John CommonsEditor and Writer at RCM News

    I actually use Netflix significantly more than I use my DirectTV. My Netflix costs 13 dollars a month. My DirectTV costs like 80.. Both of those fall underneath "home entertainment" in my budget, so if something pushes me over budget.. guess which one I'm going to drop first. If Netflix went up to 30 dollars a month I would just cancel my DirectTV. Netflix provides too much value to get dropped over a 4 dollar per month price increase. It's hard to believe people are up in arms over 4 bucks per month

    I actually use Netflix significantly more than I use my DirectTV. My Netflix costs 13 dollars a month. My DirectTV costs like 80.. Both of those fall underneath "home entertainment" in my budget, so if something pushes me over budget.. guess which one I'm going to drop first. If Netflix went up to 30 dollars a month I would just cancel my DirectTV. Netflix provides too much value to get dropped over a 4 dollar per month price increase. It's hard to believe people are up in arms over 4 bucks per month. If 4 dollars means that much to you, maybe it's time to look for a higher paying job.

  • Daniel Phinney
    Daniel PhinneyOrganic Farmer at Ten Pines Farm

    I was blown away when I re-subbd for $8 / month. I wondered, how is this possible to have infinite entertainment for cheaper than a single dvd was in the past. The price hike is no big deal, they’re still providing mind blowing value even if the service was $100 / month. P.S. if 2-10 dollars a month is breaking the bank, maybe you shouldn’t be watching Friends over for the 25th time. Or focused or mind numbing, violence glorifying superhero movies.

  • I’m surprised to see that many people are reacting to this news negatively.

    I like Netflix, so I don’t drop them this time. It depends on your values.

    And as some people suggested, $20 should be a upper limit.

  • J.H.  Gibbons
    J.H. GibbonsOwner, Founder at Achromous Fitness LLC

    Netflix is very lucky that I love The Office. $13 is fine for now, but I will think long and hard if it climbs to $20.

  • Still for me in the price range of lunch so I am good with it - their production quality is on point for me anyway.

  • Ken Knight
    Ken KnightArchitect at Self

    OMG this will raise my Netflix costs from 0 to 0, hahaha. I only pay to binge watch then shut it off.

  • Takuma Kakehi
    Takuma KakehiProduct Manager at Quartz

    Anyone wants to share my account with?

  • Donald Schwartz
    Donald SchwartzFounder at Super Pressure Washer

    Jeez my free trial just ended today😮

  • Yoko Gibo
    Yoko GiboVP growth at Willo

    Hmm time to share an account.

  • Karen Chappell-Wood
    Karen Chappell-Wood

    Since my retirement sadly streaming services are accessed quite a bit. Content is key. I actually prefer foreign series and films most of the time. Netflix and Prime provide options for me. Price increases are inevitable, but if the content quality declines then other services will likely replace Netflix. I already pay for Hulu and Amazon Prime, so at some point I will be priced out of the market.

  • Dick Roberts
    Dick Roberts

    Foreign movies , b movies , no great movies all older than the audience . How about some good content . TV reruns is not great programming .

  • Chris McCauley
    Chris McCauleySoftware Engineer

    Video contents which Netfrix provide is very interesting. but I have not always been watching all it. I want Netfrix to improve thier contents using more than costs.

  • Jacob Germain
    Jacob GermainIT admin at A small business

    Hell yeah inflation babey

  • Jonathan Azor
    Jonathan Azor

    Still, not that bad

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