Netflix is facing tough competition ever since the launch of Disney Plus and it’s going to get worse when Comcast’s Peacock and AT&T’s HBO Max are out in the next year. The Stock Market data says Netflix has already spent $15 billion this year for producing original content shows and licensing other media for their subscriber base of 160 million.
Sure netflix and chill is great and all…. but wouldnt you rather come over for some Disney+ and trust? 😏 pic.twitter.com/di6qm7e4Vb
— Acute angles🔺️💦 (@SchecterWolfe) December 2, 2019
But the analysis predicts that only two-thirds of it, around 9.2 billion will show up on their income and it means that Netflix has to increase their prices to avoid losses. Also, Netflix has to spend more money on its original shows as Disney, Warner Bros, NBC and other studios will take their shows back for their own services. In conclusion, Netflix’s price increase is imminent and here is the detailed report on that.
Netflix is Forced to Spend More on Originals
Netflix was ruling the streaming service market for the last few years, and companies way bigger that it decided to enter the area. Disney has already spent more than $500 million on its original content and plans to spend over $2 billion from next year. AT&T also plans to spend more than $3 billion on its original shows in the future years. Meanwhile, NBC has already moved Office show exclusive to their service Peacock.
netflix when disney + was announced pic.twitter.com/y4exLGuB1P
— 𝙖𝙢𝙖𝙣𝙙𝙖 (@amandaanjier) December 5, 2019
On top of that, Disney and AT&T (Warner Brothers) produce dozens of movies every year which will also stream on their services. Meanwhile, Netflix is only a streaming platform and it has no extra revenue source to increase the cash supply. The only way possible for Netflix to stay alive in the extreme competition is to hike prices for their subscription plan which could get much complicated.
Netflix Price Hike and New Subscription Plans
Netflix CEO Reed Hastings has said that they have no plans on stoping original content and instead the budget will be increased by 15 percent from the next year. It is only a matter of time when the bubble of streaming services bursts and Netflix starts losing subscribers. Currently, Netflix subscription plans costs from $10.99 to $15.99 per month, it won’t be a surprise if it’s increased to $12.99 to $19.99 per month.