November 28, 2016 - By Ruchi Gupta
Netflix, Inc. (NASDAQ:NFLX) memberships were originally available at $7 almost two years ago, however, since then there has been various price hikes, including the one that took place over the summer, which now makes membership a total retail value of $10 to Netflix subscribers.
Although the platform has 47.5 million subscribers, it is still highly-speculated whether the streaming platform is worth the amount that they are requesting to be paid. The giant streaming giant has faced problems in this regard, with many subscribers canceling membership prior to the fee hitting their credit cards.
The reason behind this behemoth’s price being considered slightly high is due to competitors, who offer the same pricing or pricing lower than Netflix membership, for more content. One of the best examples of competition would be Amazon.com, Inc. (NASDAQ:AMZN).
The first thing to note about Netflix as an entirety is that the company has been producing content for subscribers for over four years. In fact, according to reports made by Variety throughout this year, Netflix holds a larger audience of appreciation than any other network television service.
In contradiction to this, normal subscriber services, such as HBO are considerably costlier than the streaming behemoth. HBO is available to consumers at a retail price of $15. This can be subject to discount depending on the provider that is used, but that is the average recorded cost of service.
Ignoring the Netflix original content, and so forth. There is one large aspect of Netflix, which allows it to triumph its competitors, and that is its diverse range of content. No matter the demographics, age, orientation, or even race of the individual in question, there will be something that will interest you on the Netflix catalog.
Despite the criticism to the price rates, it is clear that Netflix membership subscribers are more than happy to pay the requested amount. In a survey, approximately 60 percent of the overall customer base stated that they were willing to spend even higher amounts of money each month for Netflix services.
Netflix stock last traded on $117.41, after witnessing a decline of $0.28 or 0.24%
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.
By Ruchi Gupta