Friday, June 13, 2014

Bob Jain & Talking About Motivations To Support Netflix's Increased Rate

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.

It is likely that a price increase can also increase the amount of content offered by Netflix in the future. After all, in order for Netflix to keep customers on after the initial price hike, they have to be able to make it worth it. An increase in content can help, without question, seeing as how users sign up because they want to access a tremendous wealth of movies and television shows alike. This could be one of the first steps, taken by Netflix, in order to silence the naysayers.

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.

Even though Netflix is raising its monthly fee by a dollar, it's clear that there is still a good deal to be had. Along with various movies and television shows at $8.99 a month, there is a wealth of exclusive content that is hard to ignore. "Orange is the New Black" comes to mind immediately, especially with the show approaching its second season. I believe that it is because of exclusive properties along these lines that Netflix's price elevation will be that much more worth it.




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