For those that forgot it was coming, Netflix is planning to increase its subscriber rates soon. The streaming service sent an email to its American subscribers this week to remind them the price hike announced in January will start in the next billing cycle.
Full disclosure: before coming to work full-time for WHO Radio, I worked at a cable TV company. And, yes, I got taunted quite frequently about people "cutting the cord." And it's true - Netflix is cheaper. Right now.
But there is an immutable law of economics: volume brings discounts. When your cable and satellite provider bundled all those channels together, you ultimately saved money. Because as more streaming services come on line, you'll be forced to pay for the programming you want to see - separately. And it begins to add up.
Currently, Netflix subscriptions are going up between one to two dollars. That’ll make the cost between nine to 16 dollars per month, depending on level of service. The company said it has budgeted eight-billion dollars for new shows and movies.
Netflix is preparing to compete with other streaming services by offering exclusive content. Apple announced recently plans to offer its own streaming service. Disney, NBC Universal and Warner Media are also considering getting into the business.
That means you'll have to pick and choose what you want to see and what you can live without. As more services offer more exclusive content, the cost of paying for what you want to see will certainly rise - possibly to levels that you previously paid to a cable or satellite provider.