Netflix is raising its streaming prices
Amidst growing competition the company could take a similar step in Europe.

Netflix Inc. (NASDAQ: NFLX) has come under immense pressure in recent months amid stiff competition in the streaming business. Companies like Comcast Corporation (NASDAQ: CMCSA) and Disney Co (NYSE: DIS) are increasingly eating their way into the company's empire after years of monopoly operation. Amid the shocks, the company has hiked prices on its streaming plans, a development that is likely to spark a response from subscribers.
The streaming giant has raised prices on its standard plan, which will go from $ 12.99 to $ 13.99. The premium plan, which cost $ 15.99, will now cost subscribers $ 17.99. The price increases will affect both existing and new members. However, new members who sign up will see updated prices, while current users will receive a 30-day notice before the increased price goes into effect. The company attributes the price increase to ongoing plans to offer more variety of TV shows and films. The last time Netflix raised its plans was in July last year.
The increase resulted in the company losing 123,000 subscribers that quarter. A similar fate could happen to the company as the streaming space is seen as an increase in competition with new services offering new affordable offerings every day. Likewise, the company is already experiencing a slowdown in growth when it comes to adding new subscribers. Last quarter, the company added 2.2 million net subscribers without meeting the 2.5 million benchmarks. New subscriber intake could slow even further as the company faces a shortage of movies and films on offer.
After the pandemic, making films and feature films was a major challenge. A number of films and feature films have been canceled as production has become a major concern amid stringent measures to contain the spread of the virus. Subscriber growth is important if Netflix is to generate additional revenue that is badly needed to expand its current content budget. The more the streaming giant invests in the original programming, the more it can expand its target market while reducing the current subscriber churn rate.





