58 million subscribers would be affected by the price hike, with the basic tier rising from $7.99 to $8.99 (+12.5%) per month, standard tier rising from $10.00 to $12.99 per month (+18%), and the premium tier rising from $13.99 to $15.99 (+14.3%).
It makes sense considering it seems like every week another company announces its own streaming service. NBCUniversal was the most recent, announcing 2 days ago that it would be launching its own platform to compete with streaming giants like Netflix, Disney, and Amazon.
Reddit user u/delfinom suggests a practical explanation for this rate hike:
“The problem is they need to build up their own content as the other major content producers have their contracts expiring in the next few years and they are looking to pull their content and make their own streaming sites.
Prepare for paying more for streaming then you ever did than cable if you want to watch everything :/”
The Streaming Observer reports that up 27% of Netflix subscribers would rather cancel their subscription after the latest price increase and many would switch to a cheaper, ad-supported version.
Twitter user @KingCromwell23 made a funny tweet to sidestep this move. It does, however, somewhat reflect the sentiment of many customers to cancel their subscription: