Recently, Netflix Inc. increased the prices of two of its subscriptions to produce and own high-quality TV shows as well as movies.
Netflix is now looking forward to produce its original content rather than gaining licensed content from other studios and networks.
Netflix is all set to telecast the second season of ‘Stranger Things’ on October 27, 2017. This manifests Company’s freedom of being the sole owner of a show. However, according to Netflix’s chief content officer, the streaming service would likely to bump up the content budget from 6 billion USD this year to 7 billion USD in 2018.
As a matter of fact, Netflix is already spending a lot more than its competitors. But, to keep pace with them and to gain control over its original content, Netflix has raised the cost of its subscription. Also, the company has signed an exclusive content deal with Shonda Rhimes, who is a noted TV writer and producer.
Unfortunately, this price hike surfaced when major companies are giving a second thought on offering licensed content to Netflix. Even, Disney is ending the partnership with Netflix and soon going to launch its own streaming service.