Netflix CEO Reed Hastings confirmed in a conference call with analysts on Monday that the company will be increasing its prices for new subscribers by only a couple of dollars in the coming months. However, current subscribers will be able to keep their current price point “for a generous time period.”
Current customers in the US pay $7.99 per month for the streaming service. The price increase was revealed after Netflix’s first quarter earnings were announced. Some speculate that this price increase might be due to Netflix having to pay ISPs because they are limiting customer bandwidth, essentially limiting Netflix access.
Jennifer Khoury, Comcast VP, responded, stating that “Netflix should be transparent that its opinion is not about protecting the consumer or about net neutrality. Rather, it’s about improving Netflix’s business model by shifting costs that it has always borne to all users of the Internet and not just to Netflix customers.”
What is your opinion on this price increase from Netflix?
Source: CNN Money
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