The entire 58 million subscribers to Netflix in the United States will be paying more for the service going forward. About 79 Netflix subscribers outside of the US may also be paying more in the coming months. The video streaming service said it needed to increase its rates as a result of investment in great entertainment to promote overall user experience.
This is the fourth time the company will be raising the prices of its service since its establishment 12 years ago.
There May Be Cancellations but Netflix Will Definitely Recover
Netflix’s most popular offering which cost $11 per month before this time will now go for $13. Subscribers can watch high-definition video streaming on two devices with this subscription. It’s basic plan which went at $8 per month now goes for $9 per month. Its premium plan which went for $14 per month now goes for $16. Under this plan, customers can enjoy ultra-high definition video quality of peak programs on different devices.
New subscribers will begin to pay the new price but old subscribers will be switched over in the next three months. The 58 million US subscribers will begin to pay first, and then 79 million subscribers in 40 Latin American countries billed in USD will follow suit, with Mexico and Brazil coming up in the rear.
It must be pointed out that Netflix risks having many customers cancel their subscriptions with the new prices. In 2011 when the company removed video streaming from its older DVD-by-mail service, about 600,000 subscribers switched to other providers. How this will turn out with subscribers remains to be seen over the coming months.
Netflix’s rivals such as Amazon, Hulu, Disney and HBO are not far behind. Apple is expected to begin video streaming service too.
Nigeria’s Nollywood Must Emulate Netflix’s Model for More Relevance
Netflix may have raised their prices to offset their nearly $12 billion debt accumulated over the years. The company expended $3 billion in 2018 and may spend as much this year ago to run its service. Last year, it borrowed $2 billion in bond offering to regain some balance.
The company’s stock went up 6.5% when the company announced the new prices. The shares went up $21.70 to finish at $354.64. And then, the announcement of higher subscription rates has fired movie directors, script writers and film actors to raise their fees.
Can our own Nollywood ever come to this level? Streaming movies over the internet for monthly subscription? Nollywood is still bedevilled with myriad challenges at the moment, but they could emulate the business model of Netflix, Hulu and others to put Nigeria on the global map. This will create more job opportunities and increase revenue for the entertainment industry. The government should give Nollywood the proper nudge in this direction.