Tuesday 17 June 2014

Bob Jain & Reasons Why Netflix's Price Elevation Works

By Bob Oliver


It was reported, some time ago, that Netflix would be increasing its subscription fee. Once a service that went for $7.99 on a monthly basis, it will soon go up to $8.99 every month. It was a move that drew the ire of a number of Netflix supporters and it is understandable as to why. Many consumers have been loyal to the brand and a move like this, at least at the onset, does not seem to be appealing. However, is it possible that this move is actually for the best?

Keep in mind that Netflix once stated that its monthly rate of $7.99 would be around for a long time to come. Of course, a "long time" is pretty subjective, since everyone has a different viewpoint as to what exactly this means. With that said, there are reasons to support this price elevation on the price of Netflix, even if there are fans who do not agree with it. Here are just 3 reasons why the price elevation in question might actually work well in the long term.

With a price increase, in my view, comes the need for general content to become increased as well. Seeing as how Netflix customers are not likely to be too happy with the price hike on Netflix's part, the company should be able to tell people, "This amount worth it and here's why." The addition of move television shows and movies, as well as new features to Netflix's client, should help matters. If nothing else, it will be able to keep a larger percentage of customers from cancelling their subscriptions.

Bob Jain may also look at this price increase and see it as an opportunity for competition to rise to the front. Apart from Hulu Plus and Amazon Instant Video, there is not much in the way of prominent competition. As a result, I believe that this is the opportune moment for companies to provide their services to customers and show that they can offer strong utilities at affordable prices. This is where healthy competition can be created, which is crucial in the eyes of various financial authorities like Jain.

around for the long term.- Finally, one of the reasons why it's important to support Netflix's price increase is because consumers are still attaining a good deal. Even at $8.99 a month, users have access to a tremendous amount of original content as well, one of the more popular names being "Orange is the New Black," which is approaching its second season as of this writing. If people want to watch the show, they have to watch through Netflix. The exclusive properties come together as a strong reasons why this price hike should be supported.




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