Netflix CEO Reed Hastins told users this week to brace for future price increases. He said they would not take place overnight but would gradual take place overtime.
Netflix plans to spend over $5 billion on content in 2016 and also plans to add ultra high definition which will both cost more money which must be past on to the consumer.
Netflix generated $5.5 billion in revenue last year and has over $7 billion in assets. At last count, Netflix had over 64 million sucrbribers, with 42 million of those being in the U.S.
Will consumers continue to pay for their Netflix service? We don’t see it slowing down and consumers are continually wanting more streaming content. I predict in a decade that Netflix will outpace some cable markets.