In 2008, Hulu and Apple launched video rental services. To compete with them, Netflix gave all rental-disc subscribers unlimited streaming at no additional cost. Netflix knew that giving members who already had unlimited access would prevent them from switching to Hulu or Apple. Each year, Netflix must keep evolving to keep its subscribers. There are over 200 streaming services today throughout the world, which means there are a lot of other options if Netflix does not continue to evolve.
Netflix's price has increased dramatically from 2011 to 2024. In 2011, they had a flat rate of $7.99 a month, which allowed users to watch unlimited streaming videos. However, at the time, their online library was not as extensive as their DVD collection. Then, in 2013, they came out with subscription options. The basic package ($7.99) would allow users to stream on one screen, the standard ($9.99 allowed users to stream on two screens at once, and the premium ($11.99) allowed users to stream on up to four screens at once. From 2013 to 2017, the price of the basic plan stayed the same at $7.99. In 2019, they raised the price one dollar to $8.99, and then in 2022, they raised the price to $9.99, which then phased out in 2023. They ultimately got rid of the basic plan in 2023 and came out with the Standard with Ads for $6.99 a month. Then, for the Standard Plan from 2013 ($9.99) to 2020 ($14.99), there was one dollar increase each year. However, for the past three years, it has stayed consistent at $15.49 a month. Lastly, the premium plan from 2013 ($11.99) to 2022 ($19.99) has increased a dollar each year as well. Then, in 2023, the price stayed the same at $19.99, but in 2024, it increased the price to $22.99. After looking at this data, it is safe to say they're going to continue to raise the prices. However, the big question is how much will people be willing to pay.
| Year | Basic | Standard with Ads | Standard | Premium |
|---|---|---|---|---|
| 2011 | $7.99 | – | – | – |
| 2013 | $7.99 | – | $9.99 | $11.99 |
| 2014 | $7.99 | – | $10.99 | $13.99 |
| 2015 | $7.99 | – | $11.99 | $14.99 |
| 2017 | $7.99 | – | $12.99 | $15.99 |
| 2019 | $8.99 | – | $13.99 | $16.99 |
| 2020 | $8.99 | – | $14.99 | $18.99 |
| 2022 | $9.99 | – | $15.49 | $19.99 |
| 2023 | Phased Out | $6.99 | $15.49 | $19.99 |
| 2024 | – | $6.99 | $15.49 | $22.99 |
Netflix has significantly impacted many industries. Netflix ultimately shut down Blockbuster. Even though Blockbuster could have bought Netflix in 2000 for 50 million dollars, they backed out. Netflix created an easier, more efficient product, which ultimately led more people to use their service. Before Netflix, Blockbuster was one of the only places you could rent DVDs. Another industry it impacted was movie theaters. Netflix created a whole new experience for people to watch their movies and shows. People were able to watch in the comfort of their own homes at a reasonable price. Lastly, Netflix destroyed the DVD industry. Everything we watch today is through a streaming service or watched on cable. Many stores have stopped selling DVDs because no one buys them. Netflix discontinued their DVD by mail on April 18th, 2023
Overall, Netflix has revolutionized the way we watch films today. It is the number one streaming service, with 260.28 million subscribers worldwide. Netflix is constantly evolving each year. They have created their own production company, announced plans to create their own movie theater called Netflix House, and signed deals with the NFL to stream both games on Christmas.
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