![]() ![]() ![]() I mean, Netflix essentially plans to ask for a surcharge from subscribers who share passwords, but they're also trying to keep subscribers from dropping the service altogether. I mean, it's hard to convince consumers to pay for something that they've gotten for free over a long period of time. So if Netflix manages to stop that, can it solve its problems?ĭEGGANS: Well, I'm very skeptical. So we heard CEO Reed Hastings say that a hundred million households are essentially getting Netflix for free by using shared passwords. So it makes sense that its underperforming now would produce this swift reaction.ĮSTRIN: OK. I spoke to a couple of experts earlier today who said that Wall Street investors have been reconsidering how they valued streaming services since January, when Netflix offered some pretty conservative predictions on its future performance. ![]() So in a letter to shareholders, Netflix cited increased competition from other streaming services, a slowdown in the adoption of smart TVs, those hundred million households that don't pay for Netflix and outside factors like inflation and the war in Ukraine. And in addition to their loss of 200,000 subscribers in the first quarter, they predicted they would lose 2 million more subscribers in the second quarter. What is Netflix saying about why its numbers were so bad, and why did that affect its stock price so badly?ĭEGGANS: Well, you know, for a company as big as Netflix, a drop of over 30% is massive. Hi, Eric.ĮSTRIN: So 37% is a pretty significant stock drop. We just got to get paid, you know, in some degree for them.ĮRIC DEGGANS, BYLINE: Here to talk about what this means for Netflix and for the streaming TV world in general is NPR TV critic Eric Deggans. REED HASTINGS: Remember, these are over a hundred million households that already are choosing to view Netflix. Netflix CEO Reed Hastings told investors yesterday that the company might try to claw back some revenue by cracking down on the huge number of households that watch the service for free by borrowing passwords from subscribers. It's been 10 years since that last happened. Hulu, Apple TV+, and other services also do not charge for higher quality streaming capabilities, with even the basic plans offering 4K support.Netflix, the streaming TV giant, has seen its stock price take a huge hit, dropping up to 37% earlier today after news that it lost 200,000 subscribers in the first quarter of this year. HBO Max is $14.99 per month, Disney+ costs $7.99 per month, and Peacock Premium costs $4.99 per month. Hulu's basic plan starts at $6.99 per month, for example, and the no ads plan is $12.99 per month. Netflix of course has a lot more to offer than Apple TV+ in terms of content, but it is also more expensive than most other streaming services on the market. The Basic Netflix plan is now twice as expensive as the $4.99 per month Apple TV+ subscription, and the Premium plan is four times as expensive. As of now, the Premium plan is $4 more expensive than it was in fall 2020. Netflix previously raised its prices in October 2020, so it's been a bit over a year since the last significant price jump. Current members will get an email notification 30 days before their price changes and will have the option to change plans or cancel. Netflix says that the prices apply immediately to new members and will "gradually take effect" for all current members. It allows users to watch on four screens at the same time and it is the only plan that provides a 4K HDR streaming option. The highest-end Premium plan is now $2 more expensive per month, up from $17.99. ![]() It allows for 1080p HD streaming and allows users to watch on two screens at a time. The Standard plan is $1.50 more expensive, up from $13.99 per month. This plan allows users to watch on just one screen at a time, and it limits quality to 480p standard definition, with no HD streaming available. The Basic plan is $1 more expensive, up from $8.99 per month. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. ![]()
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