Netflix share price up 1% after announcing price increases
The streaming company announces the second rate increase in a year.
Netflix share price is up after the streaming company announced that it is increasing prices again. US subscribers will see a price increase in their bills starting in May.
Why is Netflix raising its prices?
Netflix is raising its prices for the second time since January because the corporation is spending billions of dollars to provide thousands of hours of content to viewers. In 2018, the company budgeted $8 billion for original shows and movies to attract more customers, especially outside North America.
Netflix new prices: key figures
|Basic plan previous price $8||New price $9|
|Standard plan previous price $11||New price $13|
|Premium plan previous price $14||New price $16|
Netflix new prices
Subscribers who have the basic plan without HD see an increase from $8 to $9. Standard plan viewers who have HD access on two devices will have a rate hike from $11 to $13. Netflix customers who have the premium plan and can watch HD content on four devices will have to pay $16 instead of the current $14.
Why is the US Justice Department involved with Netflix?
The US Justice Department has intervened in the conflict between Netflix and the Academy of Motion Pictures Arts and Sciences. The Oscars organization wants to keep the streaming company from being considered for Academy Awards because Netflix films aren’t shown in theaters.
The Justice Department wrote a letter to the Oscars association warning that excluding Netflix from the Oscars could be considered an antitrust anti-competition violation.
‘In the event that the Academy — an association that includes multiple competitors in its membership — establishes certain eligibility requirements for the Oscars that eliminate competition without procompetitive justification, such conduct may raise antitrust concerns,’ said the Justice Department in the letter.
Netflix responded to the controversy by touting the company’s ability to provide customers easy access to a wide variety of films.
‘We love cinema. Here are some things we also love. Access for people who can’t always afford, or live in towns without, theaters. Letting everyone, everywhere enjoy releases at the same time. Giving filmmakers more ways to share art. These things are not mutually exclusive,’ said Netflix in a statement.
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