Business
Netflix Is Considering A Price Surge For Weekends, Says Report
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Netflix is reportedly testing a new business model in which customers would be charged up to 20 percent extra if they signed up on weekends.
The pricing pilot increases the basic service from $8.99 to $9.99 a month, the standard service from $11.99 to $13.99 a month, and the premium service from $14.99 to $17.99 a month, according to Mashable.
The on-demand entertainment company likely sees a possible opportunity to capitalize on a growing and relatively nascent market.
Nearly 25 percent of U.S. households won’t have a traditional TV subscription by the end of 2017, according to a report by The Convergence Research Group published in April, which was confirmed by The Daily Caller News Foundation. (RELATED: Pelosi Does Exactly What Money Expected Her To Do: Pressure Cable Companies To Support Obama Regs)
While revenue for the more established cable industry is still expected to increase, researchers calculate that total revenue for companies like Netflix, Hulu, Amazon Prime Video, and HBO Now grew 32 percent to $8.4 billion in 2016.
They also predict that revenue for over-the-top subscription video in the on-demand industry will reach “$11.2 billion for 2017 and $14.7 billion for 2018,” exhibiting a substantial uptick for each respective year.
Netflix did not reply to TheDCNF’s request for comment by the time of publication.
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