Netflix says it isn’t worried about losing customers

Netflix is warning its customers that its prices will increase on April 21 – and the streaming giant is prepared to risk losing some subscribers.

It says subscribers will fall by 8 per cent down to five million people – a loss of 400,000 from this time last year. 

The price hike could come as a monthly bump of £3 ($3 in the US) to customers of the premium plan and will affect people in the US, Brazil, Mexico and some parts of Europe – including the UK. 

It warns that up to eight per cent of its customers could be forced to turn away from the site in protest.  

Rising costs are said to be as a result of covering the expenditure Netflix is pumping into producing its own original content. 

Netflix confirmed it is testing higher prices for its plans last month with the people seeing prices of £10.99, £11.99 and £12.99 for the monthly subscription. 

Current prices are £5.99 for the basic package, £7.99 ($10.99) for standard and £9.99 ($12.99) for premium.

The suggested prices suggest that users could be charged anywhere up to an additional £3 – $3 to US customers – a month, or up to £36 ($36 in the US) a year.

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Netflix Inc, the world's dominant streaming service,is set to increase the cost of its monthly premium plan by £3 a month to cover the cost of its original content production (file photo)

Netflix Inc, the world's dominant streaming service,is set to increase the cost of its monthly premium plan by £3 a month to cover the cost of its original content production (file photo)

Netflix Inc, the world’s dominant streaming service,is set to increase the cost of its monthly premium plan by £3 a month to cover the cost of its original content production (file photo)

Netflix expects to slow in the next few months as prices put off would-be customers. 

It comes after announcements from both Apple and Disney that they are entering the arena with Netflix and launching their own streaming services. 

For $6.99 (£5.36) a month, Disney subscribers will have access to a library of movies and films spanning five categories; Disney, Pixar, Marvel, Star Wars and National Geographic.

The family-friendly service will also include Fox films such as The Sound of Music and Malcolm in the Middle following the sale of 20th Century Fox to Walt Disney.

Netflix expects to slow in the next few months as prices put off would-be customers. It comes after announcements from both Apple and Disney that they are entering the arena with Netflix and launching their own streaming services (file photo)

Netflix expects to slow in the next few months as prices put off would-be customers. It comes after announcements from both Apple and Disney that they are entering the arena with Netflix and launching their own streaming services (file photo)

Netflix expects to slow in the next few months as prices put off would-be customers. It comes after announcements from both Apple and Disney that they are entering the arena with Netflix and launching their own streaming services (file photo)

Apple has not yet said how much its service will cost or when exactly it will launch.

Netflix, however, appears to not be worried about this tumultuous time. 

It said in a statement: ‘We don’t anticipate that these new entrants will materially affect our growth.’ 

Netflix experienced said that for the start of 2019 and in the first three months it increased its profits to $344million (£263.5million)  – with sales up 22 per cent.  

HOW DO ALL THE STREAMING SERVICES COMPARE? 

Disney+

Price: $6.99 a month 

Movies:  Disney, Pixar, Star Wars, Marvel, family friendly 20th Century Fox movies. 

The service has not announced how many films in total it expects to have when it launches. 

TV shows: Every episode of The Simpsons, Malcolm in the Middle and others

Original content: 25 series and 10 films 

Netflix

Price: 8.99-$15.99 a month 

Movies: 3,861 

Shows: 1,686   

Original content: House of Cards, Orange is the New Block, Stranger Things, Narcos and hundreds more 

Hulu

Price: $8.99, $11.99 ad free

Movies: 1,646  

Shows: 1,891 

Original content: The Handmaid’s Tale is by far its standout  

Amazon Prime 

Price: $8.99 or $12.99 for Prime membership 

Movies: 12,764 movies 

Shows: 2,077 

Original content: The Marvelous Mrs. Maisel, Bosch, Goliath among others 

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