Logo courtesy of Netflix.
The popular streaming service Netflix is raising its prices in order to invest in new original movies and series.
Netflix announced Tuesday that it is raising monthly subscription prices by 13-18 percent, the biggest increase since its debut in 2007, when the monthly price was $8.
Following the announce, the stock increased 6 percent. Netflix is the world's 10th-largest internet company by revenue.
Several FAMU students said they were not sure if they would continue to be Netflix subscribers.
“I feel like with the recent increase, not only does it discourages me from continuing to subscribe to Netflix, but it also seems like Netflix is trying to take advantage of customers,” Jeremiah Jones, a freshman environmental science major from Tallahassee, said.“Netflix’s movies and TV shows have fallen off over the years due to conscious removals of popularly viewed programs. I dislike the price increase.”
The price change will affect new subscribers immediately, but current subscribers will not see an increase for three months, according to the company’s announcement.
Although the price change will only be about a $1-3 increase, the price change affects many college students who live on a tight budget.
“Although the prices are only going up $1 to $3, it sucks because most college students can't afford spending extra money on a streaming platform but most students want it because they do not have any other outlet to watch TV shows and movies,” Ashley Cohen, a senior nursing major from Tallahassee, said. “I love Netflix when the price was only $7.99 but I understand the cause of increasing the price.”
The basic $7.99 plan will now be $8.99, while the premium plan allowing four accounts under one payment, will now be increased $2 more, which will then be $15.99 per month. Netflix’s most popular plan, which had cost $10.99 a month for two HD streams, will now cost $12.99.
Netflix said its survey of 1,000 adults showed that 84 percent would still use Netflix even with the increase. But 8 percent said they would downgrade their subscription and the last 8 percent said they would cancel their subscription altogether.
“I do not really appreciate the price change,” Lauren Bolar, a senior English major from Tallahassee, said. “I understand that Netflix is becoming much bigger. I also feel that Netflix undercharges already for the services provided. If anyone expects for them to grow and become better, sometimes more money is required.”
Netflix said it plans to use at least $2 billion for new content this year.