Netflix price hikes on U.S. subscriptions

Netflix price hikes on U.S. subscriptions

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Netflix’s users in the United States will be facing prices of its monthly subscriptions rising between 13 percent and 18 percent.

Netflix, who remained spending heavily on original content and expanding its services internationally, came up with its first increase since 2017.

Video streaming pioneer’s standard plan allows streaming on two screens at a time and that will be available at $12.99 per month which was at $10.99 previously, the company said in a statement.

Netflix’s raised the fee of its top-tier plan from $13.99 to $15.99 per month. The premium plan allows at a time streaming on four devices in high definition.

The price of Netflix’s basic plan will increased to $8.99 from $7.99 for a month.

Comparing Netflix with other rivals, HBO Now, a streaming service of AT&T Inc, charges $14.99 per month, whereas $11.99 is the per month fee of Hulu’s plan having no-advertisements.

Netflix, which reported of having 137 million subscribers at the end of September last year, remained spending billions to boost up its original content enabled the company to air award-winning shows such as “Wild Wild Country”, The Crown” and “Black Mirror”. These shows help Netflix to ward off rising competition from players such as Hulu and Prime Video service of Amazon.com.

In the midst of company’s rivals like Walt Disney Co and AT&T are planning to launch streaming services, current price hikes will expectedly be fetching hundreds of millions of dollars for the Netflix ahead of those launches.

Netflix’s aggressive spending in past few years resulted in subscriber growing at a higher pace but adversely doubled its debt to $6.50 billion in 2017 which was $3.36 billion in 2016.

Daniel Morgan, senior portfolio manager at Synovus Trust Co, which owns 15,019 shares of Netflix, has been expecting company’s debt level to be reaching at $8.33 billion in 2018.

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I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.

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