Why Is Netflix So Expensive?

Netflix is an American streaming platform that now operates globally. The subscription-based streaming service offers a huge library of television shows, movies, and series. Additionally, Netflix also offers films and shows made under their own production. It is the oldest streaming service in the USA that started with just a $5 per month subscription. But today, Netflix is one of the highest subscription services in the USA. Why is Netflix so expensive? 

Why Is Netflix So Expensive?

The reason Netflix is costly is the variety of local and international content it provides and depends only on subscription fees for revenue. Secondly, Netflix keeps adding better features to its services that make the subscription expensive for viewers. 

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Netflix Subscription Cost

Netflix is one of the costliest subscription-based streaming services in the USA. Its premium plan costs $19.99 per month and provides three monthly subscription plans for its viewers in the country. One is basic, the second is standard, and the third is premium.

  • Basic

The basic package offers all the Netflix shows and movies on only 1 screen to subscribers. However, it does not offer HD streaming of videos. 

  • Standard

The standard package cost $15.99 per month. It offers 2 screens and HD quality video streaming. However, ultra-HD quality is not available. 

  • Premium

The premium package costs the highest which is $19.99 per month. It offers video streaming on 4 screens and in ultra-HD quality.

Why Is Netflix So Expensive?

Netflix is the most popular and one of the oldest streaming services in the USA. But it is also one of the most expensive videos streaming apps. The reasons why Netflix is expensive are-

  • Continuously Adding A New Feature

Based on the viewing habits, preferences, and likings, Netflix keeps bringing changes to its features. It invests a lot in analyzing customer behaviors and experiments with new features. To successfully add new features and products for viewers, Netflix has to invest money. Money gets required for the development of the features and the product. Therefore, whenever something new gets added to Netflix, the prices increase.

  • Provide International Content 

The USA has various streaming services. But Netflix is the only provider of international content. Earlier, International content could get watched at several film festivals and special screenings. But now, creators of international shows, web series, and movies bring their videos on Netflix. This content gets liked by people on a large scale.

The cost of streaming increases for Netflix when they show international content. They have to pay for various permissions and restrictions. Software requirement also changes for such content. Then, there are also currency differences. All these expenses make Netflix expensive for the audience. 

  • Subscription Cost Is The Only Source Of Revenue

Netflix is more expensive than its competitors because it solely depends on subscription costs for its revenue generation. For other competitors like HBO, CBS, Disney Plus, etc. ads are a major source of revenue. Various companies and investors put their money on these apps to stream their ads. But Netflix does not do so. It does not stream ads on the app. 

Secondly, apps like Amazon Prime do not only depend on video streaming. The prime members do not necessarily watch videos. Prime membership is also for shoppers on Amazon’s website. However, Netflix does not have this window as well. Therefore, to cover its cost Netflix has to charge more subscription fees. 

  • Self-Produced Shows And Movies

Apart from the latest shows, movies, and web series by various creators Netflix also makes Netflix original movies and series. It means apart from being a video streaming platform; Netflix is also a producer. There are various popular Netflix original shows and movies on the Netflix app. To produce these shows and movies, Netflix requires funds. And to watch these videos, you have to pay subscription fees. It makes Netflix an expensive subscription-based video streaming platform. 

  • Competition 

Netflix is one of the earliest subscription-based video streaming platforms in the USA. But today, it has developed several competitors like Amazon Prime, Disney Plus, HBO, CBS, YouTube, etc. Amid the competition, to stay in the business with the same market cape Netflix keep bringing changes and development in its services. It maintains quality and uniqueness in content. To maintain all these needs, Netflix charges more costs. Hence, it is expensive. 

How To Save On Watching Netflix?

To watch the best content online, you have to pay high to Netflix. But with a little smartness, you can also save a few bucks on the Netflix subscription. 

  • Share With Friends And Family 

The premium plan of Netflix allows you to stream videos on 4 screens. So, you can share your Netflix membership with your friends and family. 

  • Basic Membership Is More Affordable

If you want Netflix for only one person, then basic membership is a better option. It does not offer HD videos but all the Netflix content is accessible. 

  • Can Use Vouchers And Gift Cards

Find vouchers and gift cards to get exclusive rewards and savings on Netflix memberships. You may not get the gift cards every time. But sometimes it can save you money. 

  • Take A Break In Between 

You can cancel the Netflix membership when you are not watching shows or don’t find anything interesting for a while. You can, later on, join it, when some interesting shows come on the app. 

Conclusion 

The most popular video streaming service in the USA Netflix has one of the most expensive subscription costs. It is expensive because it provides a variety of local, international, and Netflix original content. Secondly, it depends only on subscription costs for its revenue generation. So, to watch better content, you gave to pay high. But you can also save some bucks by investing smartly in the app. 

Frequently Asked Questions

  1. How expensive are Netflix’s competitors Amazon Prime and Disney Plus?

Answer: Amazon Prime and Disney Plus are not as expensive as Netflix. The monthly subscription to Prime costs $14.99. While the monthly subscription to Disney Plus costs $7.99 that is far less than the Netflix subscription. 

  1. Can I watch Netflix on my laptop with a basic Netflix plan?

Answer: Yes, you can watch Netflix on the laptop with a Netflix basic plan. However, the video will stream on SD quality and only on one screen. 

Why Is Netflix So Expensive?

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