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The new rise in Netflix prices in the United States could be bad news for its competitors.
According to badysts, Netflix is still a good deal, at a price of between 9 and 16 dollars per month in the United States. Given the quantity and quality of the content released every month. A few extra dollars a month will not make most people flee, as long as consumers find movies like Bird box and series like Strange things that they want to watch. Last year, Netflix added nearly 1,500 hours of original programming in the United States, according to Quartz.
The streaming video giant, which has 139 million paying members worldwide, raised prices in the US this month, mainly to continue to invest more in original programs and new technologies, such as format "Choose your own adventure" presented in Black mirror"S" Bandersnatch. "
"Consumers have a harder time changing Netflix's price because of what's provided," said Brice Clinton, senior engineer at CSG, a software and multimedia services company, CSG. "This price increase is really used to create more original programming and invest in bigger shows … rather than putting money in the pockets of the shareholder.
The timing was also speaking. Later this year, media heavyweights like Disney and WarnerMedia will launch new subscription video services in the United States. Netflix has been getting ahead of these services, recovering a larger share of consumer portfolios. Rising prices could also lead people to rethink how much they are willing to spend each month on Netflix's competitors, experts said.
On average, Americans are willing to pay about $ 38 a month for subscription-based video streaming services, Magid consumer research firm Revealed in a survey conducted in 2018. After Netflix's standard rate of 13 Dollars a month, there are about $ 25 left for other streaming services, such as HBO Now ($ 15), Hulu ($ 8), or ESPN + ($ 5). Netflix's elevator could get people to reevaluate the subscriptions they really enjoy. When new platforms, such as Disney + and the WarnerMedia service, come on the market, users will also have to ask themselves if they are willing to give up another platform or search their pockets every month.
"By increasing their monthly fees, Netflix has just taken a larger share of the total theoretical expenses, perhaps putting more pressure on others to claim and keep their share of what's left," said Mike Bloxham. , senior vice president of media and entertainment at Global Magid, said in a statement in Quartz. "It's possible that the increase in Netflix charges will affect some consumers by terminating their subscriptions to other services."
Amazon is probably the least risk-prone company because it is not limited to a video subscription. Many people subscribe to Amazon Prime to benefit from free shipping, discounts on their purchases and other exclusive premium benefits, besides video. However, other platforms and newcomers, such as WarnerMedia's multi-level service, which will be launched later this year, may need to review the price they can charge for their platforms. Disney has already announced its intention to charge less for Disney + than Netflix, as it will launch with a smaller library focused on Disney brands such as Marvel, Star Wars and Pixar.
Want to better understand Netflix and other streaming giants? Check out our guide on TV wars streaming.
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