For the past two years, Netflix has allowed their longtime users with streaming accounts to enjoy their subscription at $7.99/month despite their price raise to $8.99 in May 2014 for new subscribers.
Netflix raised the price again in October last year to $9.99, but exempted their longtime customers who had been paying the same price for quite some time, and promised them that they have this privilege for at least two more years.
Well that joyride ends this May, as Netflix will be charging the aforementioned price to all of its users, though it’s interesting to note that users who subscribed after May 2014, will be paying $8.99 till October of this year.
What Does This Mean for Pakistani Users of Netflix?
Now before people start cancelling their Netflix subscriptions by the dozen, an explanation is in order.
- The price increase applies only to the Standard package.
- It is only applicable for users who remained subscribers since May 2014.
- Pakistani subscribers of the popular streaming service need not worry.
Simply put, it is these long-time users that will now see their subscriptions cost as much as the rest.
However, the ‘Basic’ subscription package (with Standard Definition content and 1-screen limit only) can still be availed at $8 (approx. Rs. 830).
Read More: Netflix Pakistan and Who Its For
Why Did Netflix Increase its Fee?
With 17 million streaming accounts still using the Standard package, Netflix will be garnering a $34 million increase in monthly revenue with this move, which in turn will help Netflix create more original content that has been well received by subscribers and general audience alike.
This means more seasons of Daredevil, Narcos and House of Cards, along with new IPs and films (Netflix recently signed Will Smith to do a flick for them). Netflix is slowly but surely trying to surpass its rivals like HBO Go with their wider slate of original programming.
Compared to Hulu, with a commercial free package at $11.99/month, and HBO with a larger content volume at $14.99 (both sadly are unavailable officially to Pakistani users to date), Netflix is still quite a bargain with its increasingly popular original content, and it is expected that it won’t be losing that many a subscribers despite the increase in price.