Netflix

Netflix has released their Q1 2014 earnings report today, and bundled deep in the news about numbers and dollars is a short paragraph about pricing, and an even shorter blurb about future Fire TV support.

Later this quarter, Netflix plans to increase prices for new streaming customers by $1 to $2 more per month. Current subscribers will continue to pay what they're paying ($7.99 here in the states) for a "generous time period." In addition, Fire TV owners will be able to search Netflix for content using voice on their remote, though the only time frame given was "later this year."

We continue to see more capable Internet television devices launched. Chromecast, Roku Streaming Stick, and Amazon Fire TV (on which we expect to support voice search later this year) push the quality of experience and price points for adapter products.
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As expected, we saw limited impact from our January price increase for new members in Ireland (from €6.99 to €7.99), which included grandfathering all existing members at €6.99 for two years. In the U.S. we have greatly improved our content selection since we introduced our streaming plan in 2010 at $7.99 per month. Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only. Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period . These changes will enable us to acquire more content and deliver an even better streaming experience.

Netflix justifies this increase with mention of their expanded streaming library and original content.

What say you? Will you spend up to $2 more per month to keep Netflix? Sound off in the comments.

 

Reader comments

Netflix to increase streaming prices for new customers, bringing voice support to Fire TV 'later this year'

68 Comments

Yep, no surprise they work out a deal with Comcast and next quarter we see a price increase. $1-$2 multiplied by a couple million people... Though we'd be foolish to believe Netflix would absorb that cost.

Their little blurb here, "and deliver an even better streaming experience", says it all. That's exactly the deal they worked out with Comcast.

yeah, i wouldn't mind an option of paying an additional $1 - $2 for the option to stream a brand new release.
I know it goes against the point of paying a subscription, but it seems to be the only way to get new titles. $4 is too much on other streaming options. And although RedBox is cheap, I have to get out of my car and sometimes wait a 5 minute line. (s#!t nagging like this makes me feel so spoiled)

First world problems. I solved this by getting a Roku. Can rent movies from redbox or amazon without the hassle of leaving the house.

Only tangentially related, but I started getting *really* shitty Hulu service via Comcast literally the day after Comcast and Netflix announced their sweetheart deal.

I had a pretty good experience with it up until a month or two ago. It actually works better with my Chromecast than it does via my TV's built-in app, and my TV's connected by ethernet cable to my router.

See I have the opposite. It works better on my TVs built in app than on my chromecast. But it has been much better as of late.
ಠ益ಠ

I should have prefaced that by saying that I have a cheap three-year-old Vizio TV that I guarantee has not seen a single software update to its on-board apps since I bought it. There's a good chance that the issues I've had with the TV app have less to do with Hulu's service than with a crappy client.

That said, service has also nosedived via Chromecast lately as well.

I noticed the same with my Hulu service on Comcast recently. That, combined with their "delaying" shows' availability led to my canceling the service. I really only had Hulu Plus to watch Castle and Agents of Shield, anyway.

I believe the shoe delay is at the network's discretion, not Hulu's.

Also, it sounds like we have the same bad taste in shows. :-)

Posted from one of an unnecessarily large collection of Nexus devices because I'm That Guy

Do you guys know that shows like that are usually available on Comcast's on demand? Yeah the interface sucks but the shows play well at a good resolution.

Posted via Android Central App

Speaking of Hulu, I've been wondering when Comcast or other ISPs are going to hit up Hulu (if they don't already have a deal worked out,) even though Hulu probably isn't nearly as big of a threat as Netflix it still has to be coming since they know they can get away with it now

Posted via Android Central App

As long as the grandfather is at least 3 years and they keep improving I'm good.

Posted via Nexus 5 Android Central App

and with this price increase, does that mean we'll see more new releases more often and a better movie library?

I didn't mind the commercials, as much as I minded the same commercial over and over again, especially if they had to buffer for half a minute ever 5 seconds so it took me an hour to watch a 30 minute show because of the commercials.

Netflix is invaluable to my family. I couldn't imagine how much we would've paid in media purchases for my 2yo son alone, without Netflix. That said, though I would start to scoff at the notion of increases; for the service they offer, I could see paying between $12.99 and $14.99 in the future as long as original /and timely/ content the caliber of House of Cards continues to be produced.

Posted via Android Central App

I'd pay a buck more per month to have new releases 30 days after release and 2 bucks for new releases 14 days after release... Ohh and I'd pay 2 bucks to be able to "PIN" a movie to my device for "OFFLINE" Viewing...

Posted via Android Central App

Hell, I'd pay $20 a month if they could nail down deals guaranteeing streaming access to movies from all of the major studios within 30 days of home media release, and allow offline viewing. It'd easily be worth that to me.

Then I'd be able to cancel the old disc mailing service. Count me in.

err

But then, I do prefer the picture quality and sound of blu-ray. Scratch that. I'll keep what I've got now instead, where streaming (and the crappy limited content with lower image and sound quality) just fills in when we don't have discs to watch.

If it means more originally produced content and new movies and TV shows coming to the service quicker, I'm OK with that.

Posted via Android Central App

I'd say right now with Netflix you could sign up, catch up on all the shows you want to see over a 2 month time frame(maybe even 1), leave and come back in 8-9 months and do it over again and not miss a thing. If they really want to start increasing the price the content needs to be update more than once ever 4-5 months.

Posted via Android Central App

That price increase isn't too bad. Anything to keep Ads away ( I'm looking at you, Hulu).

Posted via Android Central App

For anyone who thinks Netflix shouldn't be increasing their prices should look at inflation and thank the Gods they haven't raised prices since they started streaming in addition to renting through mail. Their service is the first and most cost effective cord cutter right now. A fee increase of $1-$2/month is minor compared to how long they've been able to "hold the line" against the increases in cost for them as a provider of content.

Actually, books are better cordcutter alternatives. Always have been, always will be.

Posted via Android Central App

Welp it's the beginning of the end. Now we pay Netflix extra and soon we will pay isp's extra. Then Netflix will pay isp's even more and we will pay even more.

Next will be YouTube and every other popular website. Then we will pay for Internet sites like we pay for TV channels and the Internet will truly be dead.

Posted via Android Central App

By "expanded media library", do they mean the library that never seems to have what I am looking for and is missing a TON of stuff that it used to have? Because paying more for less is really a....Comcast thing.

I'm OK with paying $1 or $2 more per month. However, I'm not sure I'd continue the service if prices eventually rise much more. I really enjoy Netflix's original shows, though.

Posted via AC App on HTC One

It sucks that I'll be paying extra for faster Comcast streaming when I don't have Comcast

Posted via Android Central App

I don't mind paying the higher price especially if they could land more licensing deals with the studios.

Posted via Android Central App

Sure if it means fresher content. If it's the same old stuff then no. I'll just use megashare for free.

Posted via Android Central App

I would gladly spend 5 bucks more! Still worth it.

Also: I would gladly play Hulu+ 5 or even 10 bucks more - if they would drop all the ads!

They will be producing more original content in the future, like the Marvel deal, for example.

Posted via Android Central App on The Nexus 5

I'll be keeping Netflix indefinitely. The only thing they could do to cause me to cancel is either eclipse $20/month because that's what it's worth to me currently OR stop expanding their offerings and shrink their content.

Still worth it compared to cable or dish. If I were to quit over a $1 price bump, I probably couldn't afford the service in the first place.

Posted via Android Central App