Entertainment

Link: https://www.npr.org/2019/01/15/685741087/netflix-increases-subscription-prices-as-it-churns-out-
original-content?t=1578261514084

Netflix has raised its prices for U.S. viewers, as the company invests in original content amid growing
competition from other streaming services. The company's most popular subscription plan, which
allows high-definition viewing on two screens, has jumped from $10.99 to $12.99 per month. Its
cheapest, non-HD plan has risen from $7.99 to $8.99, and its premium plan from $13.99 to $15.99.
It's the largest hike since the company launched its video streaming service 12 years ago, according
to The Associated Press. The increase has drawn a positive response from Wall Street, where
Netflix's stock increased 6.5 percent on Tuesday. The increase will affect all consumers in the United
States, the company tells NPR in a statement, as well as countries in Latin America and the
Caribbean where Netflix bills in U.S. dollars, including Uruguay, Barbados and Belize. In the U.S.
alone, Netflix has 58 million subscribers. "We change pricing from time to time as we continue
investing in great entertainment and improving the overall Netflix experience for the benefit of our
members," Netflix tells NPR.Still the dominant player in streaming and subscription video on
demand, Netflix has felt pressure from current rivals like Amazon and Hulu, as well as new
competition set to enter the market, including Disney, NBC and Apple.

Part of the company's strategy to deal with increased competition has been to put money into
original content, which it has been producing since House of Cards hit the small screen in 2013.
Michael Pachter, a media analyst at Wedbush Securities, told NPR last month that Netflix's goal is "to
be a major production company that makes compelling content that is available exclusively on
Netflix."

With Netflix getting a huge new competator into the market which is Disney they had to change their
prices also they changed market.

According to ansoffs matrix they moved to a product development market.