Netflix remains the leading name in the video streaming industry. It has revolutionized the way we consume content giving access to hot and exciting content for a monthly subscription. The company is experiencing a steady increase in the number of subscribers and crossed the magic mark of 100 million in 2017.
The subscribers of Netflix were content about the money they spent and the entertainment they got in return. The account policies of Netflix were also quite simple which allowed sharing of the service across multiple devices. The shared account prices means that you can share your Netflix account with your close friends, which in turn means that you don’t have to pay as much.
However, it means that Netflix is losing out on potential revenues. It is seeing that more people are coming forward to ‘share’ its account among them, and Netflix can do nothing to stop it – except increase the subscription price, of course.
If rumors are to be believed, Netflix is going to increase the price of its subscription. As to how much the price of the subscription would increase would depend on many factors, including the market that we are looking at.
New Account Policies
Netflix and other streaming services like Hulu have been losing part of their profit as Millennials are increasingly sharing their accounts. The new move could be a tool to tackle the problem and enable the company to earn the revenue it deserves.
Netflix is working on a new account tier system they would like to call as Ultra. The plan will allow one account to stream content to four associated devices. All the devices would be able to operate independently and get full HD content.
Apart from Ultra, the low priced subscription accounts are going to suffer. You will be able to use only one device with the Basic account while the Standard plan will allow access to two devices coming down from three. Premium subscribers would now able to access content on three devices whereas earlier the number was four. Only the subscribers of the Ultra plan will be able to use four devices to access content.
Prices May Go Up
Rumors are spreading that the price for the accounts will also go up in the future from Netflix. For now, the Premium subscribers have to pay $13 per month. The Ultra category will be priced much higher, somewhere around $19.80 per month- that’s quite a steep rise for the users!
The news about the increase in price is not confirmed till now, and Netflix hasn’t released any information on the subject. It is also heard that the new system will be first tried out in Italy on a test basis.
In this age of high competition, the increased rates may not turn out favorable for Netflix. The company may be trying to gauge the value of shared accounts, and the Ultra plan may seem suitable for families only.
We have to wait a bit before more of the news can be confirmed.