Netflix isn’t worried that a rate increase will chase away subscribers. The increase is only for Netflix customers in the United States. The price of their most popular plan will rise to $12.99 per month.
Globally, Netflix has 139 million subscribers. During the first months of 2019, the company says it expects to add 8.9 million additonal users worldwide. They expect growth in the United States to be slower due to the price increase.
Netflix’s original programming is one reason for the company’s widespread popularity. Shows like Ozarks, Stranger Things, Orange is the New Black, House of Cards, The Crown, and Black Mirror, as well as their recent original movie, Bird Box, have made a Netflix subscription a non-negotiable addition to many households.
The $2 price increase won’t cause cancellations in the United States, according to industry experts. Their more expensive plan, offering simultaneous streaming on four different devices and 4K content, will also have a price increase of $2.
The company’s CEO, Reed Hastings, said the price increases allow the company to focus their efforts on creating more original material as well as expanding access to popular programming. Retaining the streaming rights to Friends cost Netflix $100 million recently. There are currently 58 million Netflix subscribers in the United States.
