How much can Netflix raise its prices before customers cancel in droves?

How much can Netflix raise its prices before customers cancel in droves?”

It's the first increase for stateside accounts since late 2017, and it's not an insubstantial hike: Prices across all three of its streaming plans are now 13% to 18% higher for new users as of Wednesday morning. The price hike is estimated to be somewhere between 13 and 18 percent, considered the largest increase in the company's almost 13-year history. The basic single-screen SD plan has remained at $8 through past price hikes, but this time it's going up to $9. Meanwhile, the HD Standard plan (the most popular one) will rise from $11 to $13, and the 4K Premium plan will leap from $14 to $16.

Wall Street analysts have believed Netflix has demonstrable leeway to safely raise fees without the risk of significant backlash.

Needless to say, many took to Twitter to lament the price increases.

Finding the balance between low prices and high content investment has been a key challenge for Netflix executives. Existing subscribers will see the price increase in the next three months.

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Netflix's primary goal has been - for quite a long time - to produce more of its own original content. Past price increases have drawn backlash.

But the California-based company has accumulated extensive debt as it invests in that original content, the AP reports, to the tune of more than $8 billion dollars for 2018.

"We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience", the streaming giant said in a statement. The move enraged its members, and a chastened Netflix ultimately aborted the spinoff idea, but not without losing 800,000 subscribers and 77 percent of its stock's value in four months.

My humble prediction is that there is a pool of Netflix subscribers who either love the service or consider it superior to most of what else is out there. This is reportedly the fourth time the streaming service has increased its prices since it launched in 2007.

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This marks the fourth time that Netflix has raised its USA prices with the last hike coming in late 2017. Netflix is still cheaper than HBO Now and most streaming live TV services.

If you don't have a Netflix subscription and you want one, you'll start paying the higher prices when you sign up.

Netflix just announced the biggest price hike of its streaming era.

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