Netflix made the decision in 2011 to make a significant change in their service. They split online streaming and DVD/Blu-ray into two different services, effectively making customers pay double if they want to have both. It received backlash from customers, but not enough to revert things back. Money is money after all.
The ill effects of the change was felt by Netflix to this day. Despite the rise in subscribers, CEO Reed Hastings considers the company on probation in consumers’ eyes. And with that in mind, he skirted around the question if the subscription fee will be increased.
Sure, a more expensive subscription fee would seem more profitable, but it’d cause another uproar with customers. But not only that, there’s also the rise of Hulu Plus, which is currently charging the same price. Then there’s also Amazon’s service that’s picking up. There’s competition to jump ship to.
Before I make it look like they’re going to increase the fee anytime soon; Hastings said they’re happy with $7.99 a month, and they aren’t speculating on the future.
Ideally, Netflix should continue their focus on securing exclusive content and expanding their library. Cable services have ridiculous prices, and more people are turning to Netflix and the like for movies and TV shows. Sticking to the current subscription fee is more profitable in the long-term.