Economy

Did You Know That Netflix Is Hiking Its Fee?

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For many of us, Netflix has now become part and parcel of our daily lives. It is, after all, the global leader in Internet Television, specializing in providing millions of people all over the world with quality online entertainment in the form of streaming videos and music as well as providing recorded entertainment in the forms of mail-order DVDs. This is the brainchild of Reed Hastings and Marc Randolf, who together founded the company in August 1997. Situated in scenic California, this multi-million dollar company provides its many services to as many as 195 countries.

But soon, many of these people might have to say goodbye to their favorite shows on Netflix, if the entertainment giant is going to have its way. It has been speculated that Netflix plans to bring about another increase in its subscription fees. And this time, the existing subscribers will not be spared from the onslaught!

Two years ago, Netflix hiked its fees to $10 per month but allowed existing subscribers to avail its HD services for just $8. But this respite is now officially over. Netflix has announced that it plans to lump all its users into the $10 category, much to the huge dismay of over 17 million users worldwide. That’s approximately 40% of total Netflix users!

And to add insult to injury, most of these poor souls don’t even know of this steep hike in their subscription rates! Experts believe that this might not affect Netflix much in the long run. After all, it is still cheaper than pay-per-view cable TV, with its average cost per second being only Nine cents an hour. Even after the hike, chances are that most users will still be willing to pay extra for these services, with only a few taking the extreme step of having their subscriptions canceled.

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