Netflix growth continues, stocks soar and subscribers don’t mind price increase
More subscribers continue to get on board, despite a slight subscription bump with Netflix. This online service allows customers to view massive amounts of content online including movies, and television series. Netflix’ stock exploded this year to a 43% increase. Wall Street remains ridiculously optimistic however about Netflix’ and its future.
Overall, this added to a 55% power surge by the ever growing Netflix company, first founded by Reed Hastings and Marc Randolph back on August 29, 1997, in Scotts Valley, California. Many wondered why Netflix raised its subscription prices by $1 and $2 last October. This was done, to improve the platform as more series and direct to Netflix made films, make their way to the small screen and into people’s homes.
The recent price increase allows for two screens to stream content at once to $10.99 per month, up from $9.99. The premium service, allows up to four screens to stream content at once for $13.99 per month, up from $11.99. The basic service that allows for one screen remains at $7.99.
It seems less people are spending their hard earned money on theater tickets nowadays. It is much more economical, to buy a Netflix subscription and watch many original series and movies comparably. For content creators, Netflix is now the go to media platform, reaching a far greater audience than ever imagined before. The way we digest information continues to ever evolve online especially.
Overall, Netflix is increasing their content spending by $1 billion dollars each year to stay ahead of the competition. It takes quite a bit to keep people entertained nowadays. Currently, Netflix has spent a staggering $5 billion dollars on further content back in 2016.
Another $1 billion was added last year in 2017. Further plans have been made, to raise spending to surpass $8 billion during 2018. CEO Reed Hastings said Netflix expects its content budget to continue to rise along with its revenue in the years to come. “Don’t think of $8 billion as some new plateau,” he said.
CEO Reed Hastings continued by saying that Netflix does understand its responsibility to use the increased revenue to invest in content and the platform to encourage growth in subscribers and engagement.
“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,” the company stated.