No Netflix price hikes – for now
Netflix is raising prices elsewhere, so why not here?
The global video-on-demand streaming service announced it would raise prices for consumers in the United States, as well as for other regions that are billed in US dollars.
It’s the company’s fourth price hike since launching in 2007, and will see prices rise by 13 per cent to 18 per cent.
The price of Netflix’s most popular plan will increase to US$13 (NZ$19) per month, from US$11.
The company claims the extra cash from increased subscriptions will help to pay for Netflix’s investment in original shows and films, and finance the debt it has assumed to ward off rivals such as Amazon and Disney.
The streaming service launched in New Zealand and Australia in 2015, but has not raised its prices in these countries to date.
Prices for Kiwis remain at $11.49 for a basic account; $14.99 for a standard account, with HD on two devices at a time; or $18.49 for a premium account, with 4K on up to four devices at a time.
Ngaire Crawford, head of insights at media intelligence firm Isentia, said New Zealand was a smaller and younger market for Netflix. A price hike might eventuate, but not just yet.
‘‘It might be something for them to look at as exchange rates go up and if that impacts their margins.
‘‘Content rights for programming are still a bit complicated in New Zealand ... Now that [consumers] are used to a certain price point for those services, incremental increases should be expected.’’
She said Netflix tended to be the benchmark price for streaming services in New Zealand, with rivals such as Lightbox and Neon tending to match it as the service standard.