Every time Netflix raises its prices, millions of binge-watchers balk at the prospect of paying a couple of dollars more. But after considering what Netflix is offering and where it might be headed, you need to stop complaining. Because, because Netflix is an absolute steal..
In 2011, Netflix CEO Reed Hastings was forced to apologize after surprising users with an unexpected price increase. Netflix shares fell 19 percent. Then, as we reported in January 2015, Netflix is getting more expensive, check out the new Super Bowl ads... [Tech News Digest] Netflix is getting more expensive, check out the new Super Bowl ads... [Tech News Digest] A Reminder That Netflix Prices Are Going Up, YouTube Shows Super Bowl Ads Right From The Start, Microsoft Remembers Surface Pro Power Cords, HBO Is Traveling To Spain, And A Lightsaber Fight Of A Lifetime actual... kinda. Read more :
Each one of these price hikes sent users up in arms, accusing Netflix of hypocrisy, pennies, and taking advantage of its near-monopolistic position. The audacity to ask users for the cost of only half of Starbucks latte left millions of people reeling. In exchange for what? , They cried. Unlimited streaming of some of the best classic and original content ever produced, that's what.
The tense attitude of the users left me speechless. The average US household spends $2,500 per year on entertainment, $1,700 on clothing, and $580 on personal care. When the cost of movie tickets or moisturizer creeps in around a dollar or so, it barely covers an eyelid. But when Netflix wants an extra $12-$24 per year (that's $0.03-$0.06 per day!) for its ever-improving late-night entertainment, customers recoil in disgust. Let me explain why it's crazy.
Netflix customers demand an ever-expanding library. As the library continues to increase in size, the cost of maintaining and adding to it understandably increases as well. That money has to come from somewhere..
Even at $120 (as of 2016) per year, Netflix is a bargain. Ultimately, Netflix's growing all-you-can-watch buffet supposedly outperforms all of its Netflix vs. Hulu vs. Amazon Prime:Which one should you choose? Netflix vs. Hulu vs. Amazon Prime:Which one should you choose? It's been years since we've compared the big-hit streaming services Netflix, Hulu, and Amazon Prime. And with changes in pricing, content, quality, and interface, we thought it was time to take a fresh look. Read More The only possible exception here is Amazon Prime Video. For the lower rate of $99 per year, you get access to a slightly larger (though less extensive) library, along with a host of other 10 Amazing Amazon Prime Benefits You May Have Missed 10 Amazing Amazon Benefits Prime You May Have Missed Free Two-day shipping is just the beginning. Here are some notable Amazon Prime benefits you may have forgotten about or never even realized existed. Read more.
However, as we'll see later, there are other reasons not to ditch Netflix in favor of Amazon for a few bucks. In any case, if Amazon raised their prices a bit too, I'd personally argue that both are still worth keeping your subscription to. .
That said, Netflix is (at the time of this writing) even cheaper than the $12 Hulu charges for its much smaller, commercial-free library. If you want to stream HBO's limited (but awesome) titles - Game of Thrones , The Sopranos , The wire , etc.- will cost you $15 per month.
Meanwhile, iTunes and Google Play's pay-per-title deals will cost you a small fortune.
In Netflix's quarterly letter to shareholders, published in January 2016, the company stated that its members streamed 42.5 billion hours of programming in 2015. In 2014 that number was 29 billion hours. This means that the average user watched 93 minutes of content. per day on Netflix in 2015.
Over time, the average consumption on Netflix is increasing. This means that the cost per hour of consumption is going down. In other words, the more time you've spent on Netflix, the less you've paid per hour.
So when you're watching a new 10-part series produced by Netflix for far less than $0.30 an hour, compare that to the (at least) $4 an hour you spend on a movie ticket.
Aside from its extremely affordable price, Netflix has mastered the recipe for creating must-see TV series. Not only are these TV series of incredibly high quality (receiving 34 Emmy nominations in 2015), but you can also watch an entire series in one sitting, the day it was released, on virtually any device. /P>
See the buzz around shows like House of Cards , Orange is the new black , and Marco Polo . Shows of this quality do not come cheap. Their respective budgets (according to IMDb) are $4.6 million, $3.8 million, and $10 million per episode, respectively.
This creative production standard simply. has for worth paying. For less than the cost of a couple of movie tickets per month, you can have access to the entire Netflix library. You Can Catch All The Netflix Originals Coming Out During 2016 13 New Netflix Originals You'll Be Watching In 2016 13 New Netflix Originals You'll Be Watching In 2016 Netflix has released a lot of original content, including House of Cards, Orange is the new Black, Narcos, and Master of None, but 2016 is set to be Netflix's most exciting year yet. Read more . For just a few cents an hour, you can see many of the most exciting shows happening today. Hell, you can even watch some of the worst movies of all time. Torturing Yourself With The Top 10 Bad Movies On Netflix Torturing Yourself With The Top 10 Bad Movies On Netflix If you feel like torturing yourself, start by watching the top 10 bad movies on Netflix. They are so bad that they can be really good. Or not. Read more
As Marta Kauffman, the co-creator of Friends, told Indiewire:
When Amazon tried to follow suit by releasing The Man in the High Castle , The results were very good, but not on the same level that Netflix has achieved. If you're going to pay for a subscription to just one streaming service, at least choose the service with the best reputation for producing awesome show after awesome show.
By far the most exciting possibility of Netflix having more cash in its pocket is the potential for a new era of television.
Each segment of Netflix's millions of viewers enjoy different content. Until recently, most of these niches have been ignored on almost every network. Viewer numbers just aren't high enough to justify the production costs.
However, Netflix has the resources, algorithms, and know-how to create highly creative forms of television that no one else has the guts to fund. On the back Making a killer , Netflix dipped its toe in these experimental waters. The results have been extraordinary, some say this series may have created a new genre of film.
With its enviable track record, if we were to rely on a streaming service to tackle the task of reinvigorating creativity and experimentation in the television industry, there would be no safer bet than Netflix.
With more cash on hand, the doors could open to more creative and technical freedom. In Hollywood, producers, actors, and directors will likely use Netflix as their distribution platform of choice. After all, it may be the only platform that can finance and Distribute your programs to the right audience.
If, for an extra $2 a month, we can contribute to this new era of experimental television, I for one am all for it.
By comparing Netflix's price to its competitors, the quality of its productions, its ability to produce ever more creative shows, and the hourly cost of streaming, we've surely shown that a few extra dollars really don't matter.
And if those few bucks really matter to you, a couple of these money-saving tips How to Start Saving Money and Stop Spending With 4 Easy Habits How to Start Saving Money and Stop Spending With 4 Easy Habits One of the Best Resolutions New Year's on many people's lists is to spend less and save more. That's easier said than done, but you can still rely on various apps and tools to help... Read More Whether all of this convinces you or not, I certainly won't cry my milk over Netflix's small price hikes.
Will you stay with Netflix after it raises its prices? If so, what's the best thing Netflix could do with its increased revenue? Please let us know your thoughts in the comments below.