Netflix users should be prepared to pay up or go shopping as Netflix ups its prices yet again.

On August 10th 2017 the popular streaming service announced another price increase – the first since 2015. Acting immediately for new members, and transitioning existing members in with an email warning in coming weeks. Netflix claims these price adjustments are occasionally necessary to allow them to add new content and improve their product. However, this particular price hike is coming swiftly after the loss of the Disney contract, and the product improvements are few and far between. Prices are going up across all three plans: the basic, standard and premium, while only premium customers will be receiving a new service. The basic and standard plans are both increasing by one dollar, up to $8.99 and $10.99 per month, respectively; with no announced new product features. While premium members will pay an additional $2 a month for the new ultra high-definition 4K streaming content.

As the online streaming market becomes increasingly competitive, with CBS and Disney rumoured to soon release their own streaming sites, this Netflix price increase doesn’t seem like the most strategic move.

Although Netflix entered the market with a calculated penetration pricing strategy and as one of the first paid online streaming services, they may be losing traction as the competition grows. It’s not unlikely that many consumers will see the one or two dollar price increase as a price worth paying to continue enjoying the unlimited Netflix content they’ve become accustomed to. However, we’ve listened to Canadians complain about the lack Netflix content for years, as many went to great lengths masking their IP addresses to access global Netflix offerings. Additionally, the trend of “binge watching” has allowed the average client to quickly burn through new content – perhaps faster than Netflix can keep up. With many competitors offering free trials upon sign up and exclusive content, the market is easily accessible and the transition to a new service is low-risk, high-gain for consumers. With the abundance of options, and growing frustration with Netflix spreading through Canada I don’t see how this price increase will win Netflix any new clients and may even result in the loss of those loyal customers currently sitting on the fence.

I won’t argue that Netflix has built a global, reputable brand, but unless they add some serious value with this recent price increase they may just be paving the way for their competition to steal new and existing market share.