Netflix will raise prices to fund more original shows

Netflix has warned customers they may have to foot the bill for its ever-growing line up of original programmes. The on-demand platform has stated that prices could soon increase in the US and other regions to support new TV shows and movies.

The good news is that the basic standard definition Netflix package is unlikely to rise during the next three months so subscribers will still only pay £5.99 per month for a while longer.

Netflix now has 65 million subscribers across the globe with almost two-thirds of those in the United States.

The company wants to raise its pricing over the next ten years to fund more original content and aims to entice more viewers to opt for its high-definition and ultra high-definition deals, though it hasn't announced how it plans to do so just yet. It is, however, currently spending an estimated 4.6 times its current net revenue to acquire third party TV shows and movies.

Original content, including political drama House of Cards, Better Call Saul and Orange is the New Black, has proved popular with viewers so Netflix wants to produce even ore during the next decade.

Netflix CEO Reed Hastings said: "We want to take it very slow. Over the next decade I think we'll be able to add more content and have more value and then price that appropriately."

Netflix recently increased the price of its standard HD package in the UK to £7.49.

Source: Trusted Reviews

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