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Netflix CEO: Price Hikes are Coming

Yesterday we noted how Netflix broke company records by adding 3.3 million new customers last quarter. And while CEO Reed Hastings told attendees on the company's conference call that there wouldn't be price hikes during the third quarter, he made it perfectly clear that consumers should get ready for a price hike either later this year or early next.

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"We want to take it very slow," Hastings said on the call. "Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately."

You might recall that Netflix angered consumers with a series of price hikes back in 2011 that left much of the media and consumers predicting doom for the company. With Netflix now laying claim to 65 million users worldwide, obviously those predictions didn't come to fruition.

With the high (and constantly getting higher) cost of traditional cable service, Netflix obviously still has a lot of wiggle room when it comes to pricing, provided consumers continue to see a decent value proposition in regards to Netflix's endlessly rotating crop of available content.

Most recommended from 72 comments



nonamesleft
join:2011-11-07
Manitowoc, WI

8 recommendations

nonamesleft

Member

Why can't we browse through what they have?

Why can't we browse the catalog of tv shows or movies? If the price will be raised, I want to see what I am getting.
moulder3
join:2007-05-21
Boston, MA

3 recommendations

moulder3

Member

They're not HBO and (IMO) they shouldn't aim to be...

Netflix needs to tread carefully on price hikes. Mostly because they believe their successful exclusive shows (House of Cards, Orange is the New Black, Bloodline, Daredevil...etc.) will get them customers willing to maintain an endless subscription (like HBO).

IMO, their problem is that producing their own content--rather than buying rights to old shows--is EXPENSIVE! And for every House of Cards (that at least gets a lot of buzz, regardless of opinion) they've had some horribly expensive misfires. Did you know that Marco Polo apparently cost as much as a season of Game of Thrones?!?