![]() ![]() To offset the negative cash flow, Netflix has been borrowing heavily to pay for programming. The company burned through about $3 billion last year and is expecting to do so again this year. That has intensified financial pressure on Netflix, which hasn’t been bringing in enough money to pay for all its programming and other business expenses. With Apple also widely expected to join the video-streaming fray, the competition for programming is enabling top directors, writers and actors to charge more for their talents. ![]() Walt Disney is gearing up to launch a streaming channel this year. AT&T’s WarnerMedia unit plans a broader streaming service this year centered on HBO. Hulu sells an ad-free service for $12 per month. Īmazon offers a streaming service as part of its Prime shipping program for $13 per month, or $120 for an annual membership. “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.Ĭonsumers also have an increasing array of other streaming options. The company is now betting it can gradually raise its prices, bolstered by a string of acclaimed hits during that past five years that have included “House of Cards,” ”Orange Is The New Black,” ”Stranger Things,” ”The Crown” and, most recently, the film “Bird Box.” Netflix lost 600,000 subscribers after that switch. 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. ![]() Higher prices could alienate subscribers and possibly even trigger a wave of cancelations. Netflix had nearly 79 million subscribers outside the U.S. Previously, Netflix had continued to offer a basic, $8-a-month streaming plan while raising rates on more comprehensive plans with better video quality and options to watch simultaneously on different devices. subscribers, the number Netflix reported at the end of September. But this is the first time that higher prices will hit all 58 million U.S. This marks the fourth time that Netflix has raised its U.S. The extra cash will help to pay for Netflix’s huge investment in original shows and films and finance the heavy debt it has assumed to ward off rivals such as Amazon, Disney and AT&T. Even at the higher price, that plan is still a few dollars cheaper than HBO, whose streaming service charges $15 per month. That option offers high-definition streaming on up to two different internet-connected devices simultaneously. Its most popular plan will see the largest hike, to $13 per month from $11. prices by 13 percent to 18 percent, its biggest increase since the company launched its streaming service 12 years ago. SAN FRANCISCO - Netflix is raising its U.S. ![]()
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