Why Netflix Is Raising Its Prices

Netflix will be raising it’s prices in November, and many users are not happy. Furthermore, many subscribers are confused as to why the service is raising the price of its packages.

However, there are a couple a major factors at play that make this price raise essential for the service’s survival.

The main driving force of the rate hike is the service’s original programming. They currently have 200 original productions which racked up the second-most Emmy nominations in 2017.

Netflix spent $6 billion on original content in 2017, and they have plans to raise that amount to $7 billion in 2018.

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Original content is always going to be a vital part of Netflix‘s budget, it’s importance has been moving to the forefront of the company’s success.

The company’s catalog of non-original movies and TV shows has been increasingly shrinking since production on original shows like Orange is the New Black and House of Cards began.

The catalog is also set to take a brutal blow when Disney pulls all of its content from the service in 2019.

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Furthermore, competitors like Hulu have been producing far less original content, and have bulked up their offerings of network dramas and sitcoms. Many of these deals are exclusives to those services, meaning that Netflix doesn’t have the rights to stream them.

This loss of content makes Netflix’s catalog of original series even more important, as it will soon become the primary reason users choose the service.