Netflix to raise pricesPosted by Josh Taylor / January 16, 2019
Once upon a time, there would have been a massive uproar if Netflix tried to raise their prices. There was once a stereotype about millennials: they didn’t want to pay for anything. That has died out, replaced by zings about avocado toast and craft coffee. But it seems that Netflix has taken a leaf out of the British East India Company playbook: get them addicted and then jack up the price.
Reuters reports that Netflix “is raising monthly fees for its U.S. subscribers by between 13 percent and 18 percent, the video streaming pioneer’s first price increase since 2017 as it spends heavily on original content and international expansion.”
The Motley Fool, an investor publication, suggests that Netflix is raising prices just because it can. That’s good news for investors: “Great companies with good audiences can get away with pushing through higher prices — and that, in turn, typically makes them great investments.”
And speaking of investments:
If you had invested in Netflix in 2007, when it first began its streaming service, that investment could have paid off big time: A $1,000 investment would be worth more than $90,000 as of Jan. 15, according to CNBC calculations.
The price hike is allegedly going to pay for new content, which should net even more subscribers.