With word that Netflix is raising prices in the near future, what can we expect? A chorus of boos usually accompanies any attempt by the company to change their methods of broadcasting content to customers, with many claiming they’ll drop the service if their bill goes up or if things don’t remain the same.
There’s good reason for this sort of thinking. If you’re content with the service you are getting and Netflix is making huge gains and profits as is, why change? What is the reason behind needing more if you’re already on top of the mountain.
But what if they’re making a mistake? All companies want to expand and produce at a greater capacity than they did the previous year. It’s common sense. So Netflix wants to rise above and compete, create more, build a stronger library. And to do this, they have to raise their prices a little. How much? They haven’t made that entirely clear yet. But it is going to happen and folks are going to need to take a look at the possible benefits and detriments that such a change will bring:
PRO – Bigger Names In Original Productions: As it stands, Netflix has created some high quality original programming that rivals the likes of HBO and network television on a weekly basis. They have plans to release a slew of new shows in the near future, but a price increase might allow these future plans to feature an even more impressive roster of talent. Being able to cast someone like Kevin Spacey in House of Cards makes the show worthwhile, so just imagine having a larger pool of cash flow to lure in a talent like HBO did with Matthew McConaughey on True Detective. The prestige is there, some extra dollar signs might be the final bit of lubricant needed.
CON – Lack Of Exclusive Content: Original shows aside, exclusivity isn’t exactly something you can find on Netflix compared to the other services. If I have Amazon Prime for example, many of the hit movies and other shows that appear on Netflix are already available to me. If I’m limited in my budget and what I can purchase on a monthly basis, Amazon is the cheaper option and it already features its own slew of exclusives. Also compare the exclusive content we do get on Netflix to the shows on other services. Stacking old episodes of Friends you can watch on TBS daily against new episodes of Justified or Orphan Black just seems like a no-brainer. And Netflix forked over a lot of cash in that instance. Cash that could’ve been used elsewhere.
PRO – Larger, Grander Original Productions And Content: To save Netflix from the prior detriment, the service could be attempting to branch out in a way we haven’t seen yet. Purchasing films and making deals with production companies is one thing, but what about a film produced solely by Netflix? Instead of using it as a vehicle to promote films by other folks, we could see the streaming service branch out to become their own studio in a way. You see how popular it can be for a free service like Crackle, and that’s with the aid of Happy Madison productions. Imagine it solely being a Crackle production or a Netflix production. Paying a bit more might aid that.
CON – No Change In Service: Then again, there might be no change at all. You’re paying for the same old Netflix you always had, on their same plan as before, and you’re getting nothing for your elevated bill every month. That would probably be the worst case scenario for any Netflix subscriber, only made worse if it happened without much notice. There has to be something in there to really justify it because there is far too much competition on all channels of media consumption.
PRO – Ability To Acquire Better Programming To Bolster Selections: With the original point, a higher bill and more revenue should make the ability to acquire more exclusives and more high quality content for users to peruse through, add to their queue, and then never watch. Netflix already features a high quality selection of documentaries and some new releases from the mainstream and indie sectors. But if you dig deeper into the catalogue, you’re looking at disappointment. With higher bills, you’re paying for a more prestigious service. There are no real ads and there are no forms of filler thrown in on Netflix, so you should be able to expect more if the prices go up. Hulu is raising prices and their service is apparently going to reflect this change. The same can be assumed about Netflix.
CON – Larger Monthly Bill: Probably the biggest hurdle to jump for a lot of folks will be the larger price tag at the end of the month. Right now, most folks are enjoying sub-$10 a month bills with their Netflix accounts and a little more if they opt to keep the DVD service or bump up to use Netflix on more screens. Reed Hastings noted that he wants to try to push people into purchasing a more high quality stream, sort of navigating folks to pay a bit more for some better service. On top of that, the company may be looking to cut down on people sharing their passwords with friends, sort of forcing folks to pony up. But if people are content with what they pay now, why would they? What is the benefit, even if programming gets a little better? Not even the biggest show on television can force people to pay for HBO and Game Of Thrones is still garnering views through other means. Is raising the price going to alienate folks?
PRO – Possible Introduction Of Tiers, To Give Viewers More Choice On Their Monthly Bill: All of these points have jumped around and hinted at similar items that price change could bring about to make Netflix better or drive people away from it. I personally believe Netflix knows that, and would want to try to make everybody happy with any sort of price increase. So this new change might bring about the introduction of tiers to the service, more than what they already have now. Something to fit your particular viewing patterns and data consumption. This could almost be labeled a tweener choice to cap this all off, but I think of it as more a pro to the entire thing. Giving users a choice at what they will pay, even if it is just the small illusion of choice, is usually better than saying, “you will pay this and like it.” If you want access to the high quality movie tier, pay this price. If you want to get nothing but the television we offer, choose budgeted price for our exclusive content only. Different levels of access for different types of people. Arnold wouldn’t have to question Mr. Drummond because he’d have something he could fall in line with.
If Netflix is planning to grow and planning to raise the cost to use the service, why wouldn’t it expand into a newer way of operating? If it truly is the future of television and the heir to television, isn’t it only right that this would be the path it would follow?
In conclusion I ask you, what is worth it for you? A few dollars is enough to turn people away from Netflix in droves, so what would justify staying? What would justify leaving? What would you like to see happen? My hastily thrown together thoughts are above for consumption, but there could be so much more. An adults only tier with VR support? A video game tier to put Gamefly out of business? Tell us what you think.
