Longtime, subscribers of Netflix, one of the main cable TV alternatives, are in for something of a shock next month when their bill goes up for the $8.99 they have been used to, and hits $9.99 a month. The company just announced to shareholders in its fourth-quarter letter that this price hike will come in the second or third quarter.
One of main reasons people choose Netflix is the low price it comes at every month. It would not be a first if subscribers reacted unkindly to a price increase, especially with many satellite TV providers offering so much more value in their packages.
Surveys done by UBS analysts show that 41% of subscribers would not accept a price increase. Around 16 – 17 million Netflix subscribers will be affected by the price hike. The service told CBS news that existing subscribers will have a choice between keeping the HD service at the raised price, or hanging on to the $7.99-a-month plan and getting downgraded to SD service. Also, the downgraded option would only let them access TV on one device at a time.
JPMorgan’s research says that 80 percent of users affected by this change still do not know it is coming. Many of the people who do know are wondering whether the service will be letting the news out, so subscribers are not in for a total shock.
Cable and satellite still hold the distinct advantage of being able to offer more shows and channels, and there is a greater chance of stumbling upon shows that you were not really looking for until then. Moreover, while you pay more for a pay-TV connection, some of the biggest providers like Dish let you rest easy about the price not going up, thanks to a price-lock option when you sign for two years.
Also big about the sat-TV option is that DirecTV and rivals are scrambling to bring dedicated 4K Ultra HD channels, which offer an immersive experience like never before. It is the latest in life-like clarity that brings better viewing experience than even HD. The DirecTV 4K channel, along with two others has kicked off with an airing of the Golf Master’s Tournament at Amen Corner.
The latest Genie and Hopper DVRs from DirecTV and Dish, respectively, are a study in the how the TV experience in a home can be stepped up through the introduction of smart, useful features. Both devices let you record more than a single show at a time, and watch programming while on the move.