By Katie Davis F or new Netflix members streaming you favourite shows just got a little more expensive and most found out recently and don’t think you are off the grid if you have been with them for awhile as you will get your email in the coming weeks to let you know of the price changes. This is the first price increase in nearly two years that affects subscribers in Canada and will only affect Canadian sub- scribers. Netflix’s basic plan, which does not offer high defi- nition video and only permits one streaming screen at a time will now be $8.99 a month, if you want to watch content on two screens at a time with you will need the standard plan at $10.99 with premium plan subscribers will paying $2 more for up to four simultaneous streams and ultra high- definition 4K content which will now cost $13.99 monthly. In response to the price hick Netflix issued the following statement, “From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies,
introduce new product features and improve the overall Netflix experience, to help members find something great to watch even faster.” Netflix has invested heavily in producing its own original content in recent years plus the company is also facing a growing number of other competitors who are seeking the Canadian rights for TV series and movies, and potentially driving up the acquisition costs for the company which at some point it has to pass onto its members. Netflix generally raises its prices by country based on the local market. In June, the company bumped up the monthly bill for Australian users by a few dollars, saying it was responding to a local tax increase. So like your cable bill if you want more content we need to expect that pricing will have to increase in order to meeting our need for streaming our viewing entertainment.
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SPOTLIGHT ON BUSINESS MAGAZINE • AUGUST 2017
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