Despite Netflix's Price Hike, Consumers Want 'House of Cards'
NEW YORK (TheStreet) -- Netflix
Netflix made big news on Monday evening when the streaming service announced that it would be upping its popular $7.99 a month subscription price by $1 to $2 depending on what country users live in.
Netflix did not say when the new pricing would be implemented (the $7.99 monthly price is for streaming on two devices, it also offers an $11.99 a month price to stream on four devices), but for now the new price is only for new subscribers. Existing members would stay at the $7.99 price "for a generous time period," the company said on its earnings conference call on Monday.
Just hours after Netflix's earnings call, Amazon
HBO has content deals with other networks but this is the first online content deal. The move one-ups Amazon as it also ramps up its streaming service offerings through the release of Fire TV, its streaming device system competing with Apple
Amazon Prime costs $99 a year compared to Netflix's annual $96 price, before the increase. And while Netflix is a few dollars cheaper for now, consumers may rethink their Netflix subscription in light of Amazon's coup.
TheStreet's poll questioned whether consumers would pay $9.99 a month for a Netflix subscription. It did not distinguish between current users and those who currently don't have a subscription. The poll was launched on Tuesday and as of Friday morning, with 903 total votes on the poll, 62% of respondents answered "Yes, because of content! House of Cards ..." Approximately 32% voted "No! I pay for another streaming service!," while 6% selected the option, "What's Netflix?"