Netflix is planning to raise its subscription prices across the board as they are said to be investing in new programs.
All of the plans will be increased by $1-$2, making the $11 a month HD streaming plan increase to $13, with changes happening immediately for new customers and over the next three months for current customers.
Netflix CEO Reed Hastings spoke in 2017 about the necessary price hikes, stating, “Price is all relative to value. We’re continuing to increase the content offering and we’re seeing that reflected in viewing around the world.”
As of September 2018, Netflix has amassed an approximate $8 billion long-term debt, which some think is unsustainable. Jon Landgraf, FX Networks president, previously spoke about the situation, stating, “I think it would be particularly bad if anyone in one company, and I don’t care what company that is, if they were able to seize a 40 or 50 or 60 percent market share in storytelling. They can’t double again and double again and double again because the entire earth’s surface would be covered in Netflix shows in 20 years.”