It’s surprising that it took this long for Netflix to increase their prices with all that they offer. Just because the company recently announced a price increase, however, it is not a reason to abandon the ship.
College students shouldn’t be alarmed. Netflix seems to be popular on campuses and it will most likely remain that way for a while since many students use their services for cheap, easy and affordable entertainment.
Many college students are on a budget and Netflix can serve a great purpose when there are not enough funds to go to a movie theater.
In a letter the company wrote to its shareholders on April 21, it specified that the projected price increase will not affect current members, only new ones, starting in June of this year.
Being a Netflix member is still worth it because it might take one or two years for the membership price to go up according to previous trends, like the price change that took place back in 2011.
Even with a more expensive premium account, what Netflix offers is still worth the extra dollar or two. Think about it, that money will probably be spent on another morning latte anyway.
One of the advantages Netflix offers is easy access. Members can stream online through a Smartphone, a tablet, a computer, game consoles like Xbox One, PlayStation 4 or through Smart TVs including Apple TV and Amazon Fire TV. Netflix is one of the key applications that is included with the majority of home media devices like Blu-ray players and set-top boxes like Chromecast.
Netflix is convenient. Users can connect as many devices as possible registered to one account, and can stream on any of these two devices at the same time.
Members can also choose from a vast and growing archive, even greater than that of Hulu Plus and Redbox’s online subscription. Netflix’s film archive now includes a variety of different genres from Disney classics through documentaries and foreign films.
Netflix is starting to lead the way with original series productions like “House of Cards” and “Orange is the New Black,” releasing entire seasons at once. This makes it convenient for anyone to binge-watch an entire show in one day unlike regular television where one would be required to record a show and wait one week to watch the next episode.
Unlike some of its competitors, Netflix offers unlimited DVD rental services with no late fees. For example, to rent a movie at a Redbox kiosk the prices start at $1.20, $1.50 for blu-rays, and $2.00 a day plus tax. However, each day ends at 9 p.m. So assuming a regular movie is rented at 8 p.m. and returned three days after the cost would be approximately $4.00 which is only a bit less than the cheapest monthly subscription to Netflix which costs $7.99.
Now let’s say that same movie that was rented from the Redbox kiosk is not returned within a day or two or three but after 21 days. In this case, Redbox will charge their maximum cost of the movie plus tax which can range anywhere from $24 – $70 depending on the item. Clearly a better deal, with Netflix the cost will remain at $7.99 with their lowest package.
Offering a useful service at a price beneath what their best competitors are capable of producing gives Netflix a little room to negotiate. A small increase in price is a small one compared to the alternatives.