Netflix Price Increase is on the Horizon

Netflix finally talks price increase in the wake of the demise of net neutrality.

Netflix may need to change the way it charges customers for its streaming service in the near future. There was a recent letter to shareholders that hinted at a 3-tier pricing system that would charge different prices for different levels of the service.

Luckily, if this price increase happens, it will not effect existing customers right away. But, much like any other cable service, it would eventually have the existing customers integrate into the new pricing model.

Netflix will be taking its time with this one; with the company being the #1 alternative to cable television right now, they do not want to drive their customers back to traditional cable service, or to other digital means such as Hulu or Redbox online.

Recently, the term “Net Neutrality” has been used quite a lot, and not many people know what it actually is. Traditionally, service providers would only charge customers who were data hogs with overage fees, but with the demise of net neutrality this would mean the service providers can now charge the large transmitters of the data fees as well.

This could mean massive cost for a company like Netflix who saw a revenue of $1,175,230 in December 2013, depending on how much the fees will be for the transmission usage.

We will just have to keep an eye out in the coming months with the changes to net neutrality and Netflix trying to ensure they are doing the right thing for the consumer and the company.