As you might have heard, Netflix had recently increased the price of its streaming service by $1. This only applies to the company’s most popular option which brings the monthly subscription to $9.99. In the grand scheme of things, $1 a month might not be that big of a deal, but unsurprisingly many customers weren’t exactly thrilled by it.
Now if you’re hoping that the price hike is more than just about corporate greed, you may or may not be pleased with the company’s justification for it. According to the company’s CEO Reed Hastings who spoke during the company’s quarterly earnings, he states that the reason for the price hike is so that Netflix can “improve its ability to acquire and offer high quality content.”
Basically this is done for the viewers, so by paying more they are helping the company purchase more content in which they can then consume. Hastings goes on to add that over in Europe despite the price increase, it did not impede the growth of the service, so hopefully customers in the US will be just as generous and accommodating.
In the meantime if you are hoping that this is the last of the price hikes, you might be disappointed because when asked about future pricing, Hastings said that he could not promise anything. In the meantime whoever might be interested in watching the company’s earnings interview can check out the video above.
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