It was reported, some time ago, that Netflix would be increasing its subscription fee. Once a service that went for $7.99 on a monthly basis, it will soon go up to $8.99 every month. It was a move that drew the ire of a number of Netflix supporters and it is understandable as to why. Many consumers have been loyal to the brand and a move like this, at least at the onset, does not seem to be appealing. However, is it possible that this move is actually for the best?
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.
Even though Netflix is raising its monthly fee by a dollar, it's clear that there is still a good deal to be had. Along with various movies and television shows at $8.99 a month, there is a wealth of exclusive content that is hard to ignore. "Orange is the New Black" comes to mind immediately, especially with the show approaching its second season. I believe that it is because of exclusive properties along these lines that Netflix's price elevation will be that much more worth it.
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.
Even though Netflix is raising its monthly fee by a dollar, it's clear that there is still a good deal to be had. Along with various movies and television shows at $8.99 a month, there is a wealth of exclusive content that is hard to ignore. "Orange is the New Black" comes to mind immediately, especially with the show approaching its second season. I believe that it is because of exclusive properties along these lines that Netflix's price elevation will be that much more worth it.
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