Netflix price increase causes an uproar

According to CNN, about 150 million people have Netflix accounts. Over the years, people have been using Netflix more than regular cable tv but is it worth the cost?

Netflix has recently decided to up the price of their most popular plan which allows for two devices to watch, from $10.99 to $12.99 starting in May. This may not seem to be a lot of money but when you have to pay it every month, it adds up pretty quick. For a family watching with four devices, the price has now increased from $13.99 to $15.99.

An article in The New York Times explains why Netflix has to increase the price, "More of their money is going out the door than coming in, a difference that Netflix covers by borrowing even more."

Since Netflix has a negative cash flow, they have no choice but to raise the price, but where is the money going?

In a statement to the AP, the company said, “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience.”

Although Netflix claims that their goal is to improve the site, Netflix rarely updates their shows and movies and is constantly removing things that people enjoy watching.

Because of this upcoming change, Netflix is getting a lot of backlash from the public. My family has decided that we will cancel our subscription before the price change because other programs such as Hulu do not charge as much for similar plans that Netflix offers.

With the constant price changes that Netflix makes, it is safe to say that the 51% of Americans that subscribe to them may no longer continue to once the price change comes into effect.