According to the report of Wall Street Analyst, Netflix is going to increase its subscription prices in Europe and North America very soon. It will be as little as $1-$2. Alex Giaimo from Jefferies Company states that it is not going to turn down the number of subscribers.
The hike in prices can be due to commending language used in the earning calls.
According to Giaimo, increasing the subscription prices by such a small amount can generate fiscal revenue worth $500 million to $1 billion by 2021.
This resulted in the conclusion that the propulsion of the company would not change if any subscriber decides to turn down. In North America, prices were last increased in May 2019, when the prices were increased from $11-$13. This turned down few subscribers without disturbing the momentum.
Currently, Netflix offers a basic, standard and a premium plan for $8.99, $12.99, and $15.99 per month respectively. Last April, when Netflix most increased its prices, and prices of all three plans hiked by $1 to $2 per month.
On August, 29th 1997 Reed Hastings and Marc Randolph established Netflix as a business. It initially worked as mail services for DVD rentals, to launching the world’s first online DVD rental store and is now conquering the entertainment world by becoming the biggest streaming giant.
After moving into streaming it began to invest in its original content from March 2011, commencing with hour-long political drama House of Cards, which was released in February 2013. In February 2013, Netflix co-produced Turbo Fast along with DreamWorks Animation, which was released in July.
Since March 2020, throughout the pandemic, Netflix released 60-70 movies and original series per month. Because of it, it became one and only provider of fresh content during the whole pandemic. It hopes that it will maintain its quality and serve the audience with the more fresh and best content.
It is the biggest producer in Hollywood, producing an infinite number of films and television series every year. Some movies like Stranger Things, The Extraction, and The Witcher are the big hits. Netflix released 370-380 movies and tv series last year in the US. This is the reason they would highly likely increase their overall budget with the subsequent year.
