Current Events > Netflix raises prices despite record profits

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WingsOfGood
01/15/22 3:29:16 PM
#1:


https://www.reuters.com/technology/exclusive-netflix-raises-monthly-subscription-prices-us-canada-2022-01-14/

- Netflix Inc has raised its monthly subscription price by $1 to $2 per month in the United States depending on the plan, the company said on Friday, to help pay for new programming to compete in the crowded streaming TV market.
The standard plan, which allows for two simultaneous streams, now costs $15.49 per month, up from $13.99, in the United States.
Prices also rose in Canada, where the standard plan climbed to C$16.49 from C$14.99.

he U.S. price of Netflix's premium plan, which enables four streams at a time and streaming in ultra HD, was increased by $2 to $19.99 per month. For Netflix's basic plan, with one stream, the cost rose by $1 to $9.99 per month.
In Canada, the premium plan rose by C$2 to C$20.99, and the basic plan was unchanged at C$9.99.


Time to stop acting like this is normal. Blah blah businesses need to raise their prices every year blah blah.
No they don't You don't make that argument about employee wages suspiciously.

Why would a company making more and more money before raising prices.... need to.... raise prices? They don't. The pandemic was a huge boost for them.
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WingsOfGood
01/15/22 3:33:58 PM
#2:


Similarly Chickfila did the same thing. They raised all their prices despite.... the pandemic being a boom for business.

https://www.ajc.com/ajcjobs/chick-fil-as-profits-soar-despite-pandemic-still-closed-dining-rooms/VQNTRH246FF7BFKZHFPENWSCFE/

I do not believe they raised the base emplyee wages however....hmmm.
"We have to raise our prices cause of rising costs!"

Yet you are somehow making more money than you were before...
If it was to offset costs, you would NOT make more money....

WAKE
UP
PEOPLE
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Irony
01/15/22 3:36:04 PM
#3:


My local McDonald's raised the price of everything, however they gave every employee a $2 raise.

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WingsOfGood
01/15/22 3:38:19 PM
#4:


WingsOfGood posted...
to help pay for new programming to compete in the crowded streaming TV market.


This is a funny line.

"Competition is STIFF! CROWDED!"

Wait, lets just raise the price! That will make people want our service more than the other tons of services they can pick that is not us!

That is...not logical.
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whitelytning
01/15/22 3:39:19 PM
#5:


Publicly traded company seeks to make more money? Stop! No way!

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shevman
01/15/22 3:39:24 PM
#6:


Their profitability is decreasing so they have to raise prices to maintain it.

Theyve basically maxed out on subscriber numbers - most people who would use Netflix have it already. So they cant make much more money from generating new subs.

They also have to invest significant money into original content with big name actors because competitors like Disney have pulled their content off Netflix and started their own services. Again cutting into profitability.

So increasing sub prices is the only way they can keep going. This will continue on a regular basis until Netflix simply cant keep up its profits while competitors undercut them at which point theyll probably die as a business.
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Doe
01/15/22 3:40:21 PM
#7:


whitelytning posted...
Publicly traded company seeks to make more money? Stop! No way!


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Talib_21
01/15/22 3:40:21 PM
#8:


Spoiler

The price of pretty much everything is going up right now the, the entire market is a shit show

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Jagr_68
01/15/22 3:40:46 PM
#9:


Inflation rising again everywhere.

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Cokewave
01/15/22 3:41:00 PM
#10:


WingsOfGood posted...
This is a funny line.

"Competition is STIFF! CROWDED!"

Wait, lets just raise the price! That will make people want our service more than the other tons of services they can pick that is not us!

That is...not logical.
User growth has slowed down for Netflix, so they're raising prices. They have an entire department that does projections for creating a equilibrium price to maximize return.

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WingsOfGood
01/15/22 3:41:42 PM
#11:


Talib_21 posted...
Spoiler

The price of pretty much everything is going up right now the, the entire market is a shit show

@Talib_21
I already addressed this.

Record profits proves this is not because the price of everything goes up. If you raise prices and make more money, you didn't just offset costs. But the gullible sure do buy into that shit lmao....
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Kingbuffet
01/15/22 3:41:47 PM
#12:


Messed up, too much corporate greed

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Kaiganeer
01/15/22 3:42:16 PM
#13:


vote with your wallet, not with your gamefaqs.gamespot.com message board account
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WingsOfGood
01/15/22 3:43:33 PM
#14:


Jagr_68 posted...
Inflation rising again everywhere.

Inflation is just an excuse to squeeze more profits tbh.

Chickfila is proof of that as the article explains they made tons of money from the pandemic...but claim they need to raise prices to offset costs...no they really don't.

But give a business an excuse and they will take it. And that will contribute to more inflation.

But hey! You get to tell a tc "omg I smart it is inflation!" good for you
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WingsOfGood
01/15/22 3:43:56 PM
#15:


Kaiganeer posted...
vote with your wallet, not with your gamefaqs.gamespot.com message board account

I will, but others should too
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Irony
01/15/22 3:44:34 PM
#16:


Netflix still sends me emails harassing me about how long it's been since I canceled my subscription.

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LeoRavus
01/15/22 3:45:01 PM
#17:


I just canceled mine and told them to stop being greedy as the reason.

I have until the 30th. Might watch the new Witcher season then farewell.

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Talib_21
01/15/22 3:45:05 PM
#18:


WingsOfGood posted...
@Talib_21
I already addressed this.

Record profits proves this is not because the price of everything goes up. If you raise prices and make more money, you didn't just offset costs. But the gullible sure do buy into that shit lmao....


Well I guess Im just not as woke as you

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SiO4
01/15/22 3:45:27 PM
#19:


Kaiganeer posted...
vote with your wallet


I say this all the time.

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WingsOfGood
01/15/22 3:46:12 PM
#20:


LeoRavus posted...
I just canceled mine and told them to stop being greedy as the reason.

I have until the 30th. Might watch the new Witcher season then farewell.

10/10 post.

Thanks.
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WingsOfGood
01/15/22 3:47:52 PM
#21:


Talib_21 posted...
Well I guess Im just not as woke as you

It is not about being woke, it is that if you just go "well, inflation, everything goes up." then of course everything goes up because someone is gonna be like "our costs are literally the same but we can increase prices now because everyone thinks everything is going up."
And this literally is happening with many things.

One thing to keep in mind is productivity goes up every year. The idea that costs always go up is a lie tbh since productivity going up actually cuts costs. For example, I make programs for this exact purpose. They literally cut costs of all sorts of labor. Management is even using these to offset "labor shortages" which is code for we don't want to hire more people cause not doing so CUTS COSTS and let the programs do the work instead.
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MabusIncarnate
01/15/22 3:48:52 PM
#22:


I use it enough that a dollar isn't any hair off my ass.

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DrizztLink
01/15/22 3:50:31 PM
#23:


MabusIncarnate posted...
I use it enough that a dollar isn't any hair off my ass.
Hypothetically speaking, purely for the sake of conjecture, how much is the hair off your ass?

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WingsOfGood
01/15/22 3:51:14 PM
#24:


MabusIncarnate posted...
I use it enough that a dollar isn't any hair off my ass.

That is what they were hoping. I can't change your mind though if you really like the service. Just keep in mind, they will do it again and again.
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lilORANG
01/15/22 3:52:11 PM
#25:


I still mooch off my parents' account so nbd here.

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WingsOfGood
01/15/22 3:53:47 PM
#26:


lilORANG posted...
I still mooch off my parents' account so nbd here.

Living the life.
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#27
Post #27 was unavailable or deleted.
_HayleyWilliams
01/15/22 3:55:03 PM
#28:


They must have raised Netflix minimum wage

/s

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WingsOfGood
01/15/22 3:55:49 PM
#29:


[LFAQs-redacted-quote]


ok?
Doesn't mean raising prices isn't greed. Charity fyi is tax writeoffs for companies.
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Irony
01/15/22 3:57:02 PM
#30:


WingsOfGood posted...
ok?
Doesn't mean raising prices isn't greed. Charity fyi is tax writeoffs for companies.
We don't want CFA to give to charity because it's always bigot ones.

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Axiom
01/15/22 3:57:46 PM
#31:


The worst streaming service raises its price reinforcing why I will never sub to it outside of the random free trial they send begging me to give them money lmao
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WingsOfGood
01/15/22 3:58:25 PM
#32:


Irony posted...
We don't want CFA to give to charity because it's always bigot ones.

Well I was meaning giving out free food is nice and all, it is charity and can be written off for tax purposes.
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_Rinku_
01/15/22 3:58:34 PM
#33:


I can't personally fuck with any subscription service that's more than $10/month. I know there's a Netflix tier that's only $8.99, but that's for 480 quality.

Netflix, as of late, has just been garbage. There would occasionally be a movie on there that I'd want to watch, but those instances were months apart. I couldn't stand most of the original shows. Personally, I'm the type to only subscribe when there's something specific I want to watch, enjoy it for that month, and then cancel. You're almost always going to be wasting money when you just leave things on a subscription. Think: when was the last time you intentionally went on Hulu or HBO Max to watch something (not to have on for background noise)?
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WingsOfGood
01/15/22 3:59:11 PM
#34:


_Rinku_ posted...
I can't personally f*** with any subscription service that's more than $10/month. I know there's a Netflix tier that's only $8.99, but that's for 480 quality.

@_Rinku_

Not anymore. Now it is $9.99
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#35
Post #35 was unavailable or deleted.
Doe
01/15/22 3:59:32 PM
#36:


WingsOfGood posted...
Doesn't mean raising prices isn't greed
So what price should Chick fil a fast food be capped at and how do we do that calculation?

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AloneIBreak
01/15/22 4:00:22 PM
#37:


Under what sort of circumstances would we all agree that its okay for Netflix to raise prices?

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WingsOfGood
01/15/22 4:00:54 PM
#38:


[LFAQs-redacted-quote]


Was this due to the raise of these prices or did Chicfila already do this?
See, they made even more money this year despite having to close their dining rooms. They could have easily increased employee benefits, had tons of profit left, with the old prices.

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Irony
01/15/22 4:01:06 PM
#39:


AloneIBreak posted...
Under what sort of circumstances would we all agree that its okay for Netflix to raise prices?
If they actually got more content

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MabusIncarnate
01/15/22 4:01:11 PM
#40:


DrizztLink posted...
Hypothetically speaking, purely for the sake of conjecture, how much is the hair off your ass?
About tree fiddy

WingsOfGood posted...
That is what they were hoping. I can't change your mind though if you really like the service. Just keep in mind, they will do it again and again.
I'm just numb to it at this point I guess, it won't end, but I have 0 confidence that any business is in the best interest of the consumer, it just comes down to what you are willing to pay for stuff you want.

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WingsOfGood
01/15/22 4:02:54 PM
#41:


MabusIncarnate posted...
ut I have 0 confidence that any business is in the best interest of the consumer, it just comes down to what you are willing to pay for stuff you want.

I agree.
But I also believe most consumers are quite ignorant to this and even literally think things like "oh Chicfila raised prices, poor dears, they HAD to cause inflation and JOE BIDEN RAR! DA ECONOMY! RAR"
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_Rinku_
01/15/22 4:04:13 PM
#42:


WingsOfGood posted...
@_Rinku_

Not anymore. Now it is $9.99
See, that's ridiculous. I first subbed when it was like $8 and the streaming was basically just a bonus feature/the main draw was still the DVDs.

I'm also a cheap bastard that will gladly use the ad-supported version of a streaming service if it's cheaper. The only exception I make is Spotify because the free version is basically unusable on phones lol
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WingsOfGood
01/15/22 4:06:35 PM
#43:


_Rinku_ posted...
See, that's ridiculous. I first subbed when it was like $8 and the streaming was basically just a bonus feature/the main draw was still the DVDs.

I'm also a cheap bastard that will gladly use the ad-supported version of a streaming service if it's cheaper. The only exception I make is Spotify because the free version is basically unusable on phones lol

Pretty smart.
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MabusIncarnate
01/15/22 4:07:34 PM
#44:


WingsOfGood posted...
I agree.
But I also believe most consumers are quite ignorant to this and even literally think things like "oh Chicfila raised prices, poor dears, they HAD to cause inflation and JOE BIDEN RAR! DA ECONOMY! RAR"
Remember how big CE was on CD Projekt Red? They were the dev that "cared so much" and then Cyberpunk happened. Some companies are better at hiding their practices.

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_Rinku_
01/15/22 4:14:39 PM
#45:


AloneIBreak posted...
Under what sort of circumstances would we all agree that its okay for Netflix to raise prices?
I don't know if anyone is saying that it's not "okay" for them to raise prices. Consumers are just frustrated. I mentioned that when I first signed up, it was like $8/month. They had an absolutely massive catalogue of shows and movies that I actually wanted to watch. Now, the catalogue is 90% "original" garbage and it's more expensive. Like, I genuinely despise a lot of the Netflix originals because it's formulaic drama that gets drawn out to the point that even if it's interesting for half a season, it goes on for six.
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