Inflation is back in a way not seen since the late 1970s. Prices of everything are rising and entertainment is no different as the world re-opens after COVID restrictions plus the chickens of a decade of printing money come home to roost. Netflix is raising prices. Will others follow?
U.S. and Canada will feel the pain first with the basic package, the single standard definition plan, going up by $1 to $9.99 a month.
Netflix’s best-selling two-stream high definition plan will go up by $1.50 to $15.49 per month and the premium 4K plan will go up by $2 to $19.99 per month.
These are the first rises for Netflix for fifteen months in the US and Canada. After staggering growth the subscriber sign-ups have slowed right down as HBO Max and Disney+ take big bites out of the streaming market, including Netflix, and the Amazon Prime free delivery USP proving hard to give up.
This all adds to the constant argument of how much is too much? We already had a Livestream about this, and have been reporting on this since we started Last Movie Outpost, at what point is the market all grown out?
I personally have a full satellite TV package, Disney+, Amazon Prime, and Netflix. This means my home entertainment budget is just under £1,400 a year before adding any PVOD purchases. Something, sooner or later, will have to give.
Any market slow-down won’t be good news to the BBC. This weekend they received a hammer blow from the news that the TV license in the UK is to be scrapped.
A TV license is a charge, in place in many countries around the world from Austria and the Czech Republic to South Korea, to fund TV production without advertising. Usually, it supports national broadcasters.
UK Culture Secretary Nadine Dorries announced this weekend that the UK TV license fee will be frozen pending cancellation as the broadcaster is moved to a subscription model. The feeling is that the world of broadcasting has changed beyond all recognition and the BBC needs to compete on its own terms.
Opponents point out that 43p per day (£159 per year) for a wide range of TV and radio services that is completely free of advertising represents great value for money, particularly when you consider the prices haven’t really increased in real terms as the service has grown.
This is countered by the argument that if the BBC services are so good, then they should have no issues standing on their own two feet in the marketplace. A new front in the culture war has opened up on social media over this at the weekend and the debate starts to rage.