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Netflix Announces Massive Rate Increase

Netflix subscribers received an unwanted announcement this week when the media company announced massive rate increases.

For their most popular program – 1 DVD rental at a time plus video streaming services – rates are going up an amazing 60 percent! Existing customers will have the privilege of continuing to pay only $10 per month until September when the rate goes to $16 per month. New customers have to pay the $16 price tag.

Anyone that has paid for cable television through the years has gotten used to regular rate hikes. That’s one of the reasons I’ve never paid for cable TV. Netflix seemed to offer a viable alternative to paying for TV.

Now Netflix is receiving overwhelming negative feedback for their massive price increase. A recent Business Insider survey have indicated that as many as 41 percent of current subscribers are considering cancelling their Netflix service.

I currently pay $10 each month to Netflix and it seemed like a reasonable price for the service. When the streaming service works it’s great, but I haven’t streamed any Netflix videos in weeks. And I only order 2-3 DVD’s each month. Sure it is a luxury, but I can allow myself a $10 luxury every month.  

Paying an additional $6 each month certainly won’t break the bank, but the fact that it is such a massive increase is troubling. Is this just the beginning of regular rate increases from Netflix?

Certainly not everyone that is voicing their displeasure right now will eventually cancel their Netflix subscription. Personally I’ve not decided yet whether I will cancel my subscription, but I’m definitely considering it.

My hope is that the overwhelming backlash that Netflix is experiencing will force them to rethink this rate increase. Netflix has been a great service and I would hate to seem them turn into just another cable company.

Filed in: Budgeting, Christian Finance, Stewardship

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