“Netflix Inc 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,” Reuters reports. “Prices for its popular standard plan, which allows streaming on two devices at the same time, will be increased to $12.99 per month from $10.99, the company said in a statement.”
“The company’s top-tier plan, which allows streaming on four screens in high definition, will be raised to $15.99 from $13.99 per month, while fee for its basic plan will rise to $8.99 from $7.99,” Reuters reports. “In comparison, Time Warner Inc’s HBO Now streaming service charges $14.99 per month, while Hulu’s no-advertisements plan is priced at $11.99 per month.”
“Netflix is scheduled to report its fourth-quarter results after market close on Thursday,” Reuters reports. “‘With Netflix frequently tapping the debt markets on several recent occasions, the price hike could help ease concerns with a growing deficit on free cash flow to fund a likely continued escalation in Netflix’s content spending, which likely topped $13 billion in 2018,’ CFRA analyst Tuna Amobi said.”
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MacDailyNews Take: The total for cord-cutters will be approaching cable/satellite rates sooner than later. Even price increase from established players leaves that much less in users’ budgets for Apple once they finally get around to launching their streaming service.
So you think it would have been smarter to launch Apple Video years ago, when The potential revenue was $8 per customer per month? Seems to me Netflix quickly turning into cable TV is a great thing for Apple. Now is the ideal time to undercut Netflix, create additional value with seamless device integration, and make some miney to boot. Netflix is overplaying it’s hand.
Content doesn’t make Apple’s level of profit and it never will.
Then why is Apple chasing after Netflix?
LACK OF FOCUS
There’s no way Apple can catch up to or even hope to compete with Netflix, Amazon Video, or even the rest of the major network hosted streaming apps. Creating great content is expensive, time consuming, and is based on years of previous experience. Cook and crew lack that tenacity, attention span, and aptitude.
Besides, ROKU and Amazon Fire, IMO are much more viable streaming boxes that are not locked down and play well with others. Cook killed the ATV’s chances years ago by ignoring the platform… just like he did the iPad Pro, the Mac Pro community, Wireless Mesh networks, and Home Automation.
Netflix is just doing what all subscription services do. Watch Apple follow suit, with even more premium pricing.
I agree that subscription media services are all highway robbery. But if you think Netflix is overplaying its hand, I refer you to the right sidebar where MDN lists in the top 10 freebie iPad apps include Amazon Prime Video, YouTube, and Netflix. 2+ generations of conditioning Americans to be couch potatoes has proven highly effective.
Apple has been rumored for years to be producing content. Bad idea. Very bad idea. Leave that crap to Netflix and Amazon.
Also, How about Apple focus on making computers again? Make computers people will buy. Gaming systems, hybrid laptop/tablet, mainframe, best desktops, portables and above all focus on next gen OS to MacOS.
PBS Passport. Intelligent and entertaining TV for tax deductible $5/mo.
All this money for “original content” and they’ve got like three good shows buried underneath an avalanche of hot garbage. Take a good look at that awful Will Smith movie “Bright” to see where your hard-earned money is going, Netflix subscribers.
For the naysayers, we’re way too early into this game to be predicting who will and won’t be successful. Cellphones had been out for years before Apple decided to jump in. Apple essentially has Disney wrapped around its finger, if it doesn’t pull the trigger and buy it outright. There will be plenty of content to stream. As for Netflix, everyone could have predicted the prices would climb with original content production ramping up.