Netflix is raising the price for its most popular U.S. video streaming plan by 10 percent— a move that could boost its profits but slow the subscriber growth that drives its stock price.
The change announced Thursday affects most of Netflix’s 53 million U.S. subscribers.
WHAT GOES UP
Netflix will now charge $11 per month instead of $10 for a plan that includes HD and allows up people to simultaneously watch programs on two different internet-connected devices.
The price for another plan that includes ultra-high definition, or 4K, video, is going up by 17 percent, to $14 from $12 a month. A plan that limits subscribers to one screen at a time without high-definition will remain at $8 a month.
The increase would be the first in two years for Netflix, although it won’t seem that way for millions of subscribers. That’s because Netflix temporarily froze its rates for long-time subscribers the last two times it raised its prices, delaying the most recent increases until the second half of last year for them.
Netflix isn’t giving anyone a break this time around. It will start emailing notifications about the new prices to affected subscribers Oct. 19, giving them 30 days to accept the higher rates, switch to a cheaper plan or cancel the service.
WHY PRICES ARE RISING
The price increase are being driven by Netflix’s desire to fatten its profit margins as it spends more money to finance a critically acclaimed slate of original programming that includes shows such as “House of Cards,” ”Orange Is The New Black,” ”Stranger Things,” and “The Crown.”
Those series’ success helped Netflix land more Emmy award nominations than any TV network besides HBO this year. It’s also the main reason Netflix’s U.S. audience has nearly doubled since the February 2013 debut of “House of Cards” kicked off its expansion into original programming.
But paying for exclusive TV series and films hasn’t been cheap. Netflix expects to spend $6 billion a year alone on programming this year, and the expenses are likely to rise as it competes against streaming rivals such as Amazon, Hulu, YouTube and, potentially, Apple for the rights to future shows and movies.
Both Amazon (at $99 per year, or about $8.25 per month) and Hulu ($10 per month) now offer lower prices than Netflix.
POSSIBILITY OF BACKLASH
Netflix believes its price rate is justified by recent service improvements, such as a feature that allows people to download shows onto phones or other devices to watch them offline.
But Netflix subscribers have rebelled against price increases in the past, most notably in 2011 when the company stopped bundling its streaming service with its DVD-by-mail service, resulting in price increases of as much as 60 percent for customers who wanted both plans. Netflix lost 600,000 subscribers and its stock price plummeted by 80 percent in the subsequent backlash. The company rebounded strongly, though, propelling its stock from a split-adjusted low of $7.54 in 2012 to about $184 now.
And Netflix blamed a temporary slowdown in subscriber growth last year on the lifting of its price freeze on long-time customers who decided to drop the service rather than pay slightly more money.
Wedbush Securities analyst Michael Wedbush believes less than 10 percent of current subscribers will cancel Netflix as price rise again, but he predicts it will be tougher to attract new customers who will choose cheaper alternatives from Amazon or Hulu.
What that new ‘Jessica Jones’ character means for the season and the series
Friend or foe?
Warning: This post contains spoilers for Jessica Jones Season 2.
Marvel’s Jessica Jones has been a revelation for women ever since it premiered in 2015. Not only did it present us with a deeply flawed and traumatized protagonist, it dealt with her history and insecurities head-on.
In Season 2, we still have a host of varied, complicated women; from Carrie Ann Moss’s struggling Jeri Hogarth to Rachael Taylor’s unraveling Trish to our newest character, played by Janet McTeer. It’s a pivotal role with DEEP complexity and physicality, the likes of which is rare for women in action shows – especially women of a certain age.
McTeer is first introduced as Dr. Leslie Hansen, a scientist linked to the ominous IGH, but we quickly learn that there’s far more to her. She has abilities like Jessica’s, but dialed up to 11; with her super strength comes a rampant rage – a dissociative disorder that’s a side effect of the experiments IGH actually conducted on her.
When that switch flips, she becomes incredibly volatile, but with an almost childlike fixation on the source of her distress. McTeer communicates all this with a clenched jaw and unwavering gaze – and that’s before all the stunt work.
“That was fun, you know, the idea of being someone who works really hard to control her emotions, control herself,” McTeer told Mashable at the Season 2 premiere in New York. “She doesn’t know how to do that particularly but she tries very hard in all kinds of different ways and doesn’t always succeed.”
And then there’s that Episode 6 reveal, the shaky word a disbelieving Jessica says after tracking her quarry back to the house where she lives: “Mom?”
At first, turning this new character into Alisa Jones feels like a bit of a MacGuffin for Jessica’s quest to figure out exactly who or what she is. The tragic loss of her family is one of Jessica’s most formative experiences, like so many other superheroes. It’s infuriating to think her mother was alive this long and that their paths never crossed. Alisa didn’t even seek her out.
Episode 7 addresses all of that in flashbacks, but it’s still maddening. Especially with an ostensibly retconned dead boyfriend plot for Jessica that ends up being her mother’s fault (that jacket reveal though…:crying emoji:).
As the season builds to a climax, it’s hard to reconcile those revelations with a forced mother-daughter vigilante bonding subplot. Sure, there’s a tenderness to Alisa tending her daughter’s bullet wound that we haven’t seen Jessica experience before, but Mama Jones is a ticking time bomb and combustion is all but inevitable.
By now, we know how this ends: Alisa goes rogue (Jessica with her, for a time) and there’s no reeling her back in. By the final episode, she’s lost the only person who could help her scientifically and joined Jessica in the dead boyfriends’ club – she also murders a detective in a surge of violent energy reminiscent of Kilgrave himself.
“I’ve never seen a woman play a part like this,” McTeer said. “I’ve seen men do it very often but you know, I’m a middle-aged woman, so that was fun. Hard, harder than playing it when you’re 25 because it’s very physical, but still great.”
“You do something like this and you hope someone will go ‘Oh, that’s a good idea, let’s do another one!'” she added. “‘Does an FBI agent have to be a man? Let’s make it a woman. Does that person really have to be a man? Let’s make it a woman.’ I’d like that to happen more.”
If any show was going to do it, it’s this one.
Jessica Jones Season 2 is now streaming on Netflix.
Offred is 1000% over it in new ‘Handmaid’s Tale’ teaser
The Handmaid’s Tale just served up an International Women’s Day teaser of Offred and her sisters fighting back. After a first season that explored women losing all their agency, Season 2 shows shows the women of Gilead refusing to be oppressed any longer.
The teaser is mostly a few flashes of footage and imagery – including Offred in front of a noose and a weeping Moira (Samira Wiley) – narrated with the emotionless cadence Elisabeth Moss perfected as Offred. She lists the requirements of the handmaid like commandments: “Wear the red dress, wear the wings,” and eventually, “Shut your mouth, be a good girl, roll over and spread your legs, yes ma’am, may the lord open.”
And then the teaser ends with a burst of frustration: “Seriously, what the actual f–”
The Handmaid’s Tale Season 2 premieres April 25 on Hulu.
Obamas in talks with Netflix about original shows, report says
Netflix Originals from the Obamas may be coming.
You could soon be watching Netflix Originals commissioned by Barack and Michelle Obama.
According to a report by The New York Times, the former president and first lady are in “advanced negotiations” with the streaming giant to produce a series of shows.
The proposed deal, the Times reports, would see Netflix paying the Obamas to commission exclusive content, which would “highlight inspirational stories.” Exactly how many shows and episodes we can expect, whether these will be documentaries, mini-series or otherwise, has not yet been confirmed.
How much the Obamas will be paid is also still unclear.
Netflix currently boasts 117 million members in over 190 countries — quite the robust platform for the already social media-dominant Obamas to potentially leverage.
But the Times surmised that Obama wouldn’t be using the platform as “a direct answer to Fox News or Breitbart.com,” writing:
Mr. Obama does not intend to use his Netflix shows to directly respond to President Trump or conservative critics, according to people familiar with discussions about the programming.
Netflix isn’t the only streaming service interested in content commissioned by the Obamas it seems, with the Times reporting that executives from Amazon and Apple had also “expressed interest in talking with Mr. Obama about content deals.”
Mashable has reached out to Netflix for comment.