Canadians will soon need to pay more to watch series and movies on Netflix. The company has raised the price of its plans for both new and existing users. While the rise has been already implemented for new subscribers, existing users will be notified through email before new rates are charged from them.
In a statement released by Netflix, the company cited addition of new content and introduction of new features and services as the reasons behind the price rise. It said that Netflix adjusts the pricing of its packages from time to time as they introduce new movies, exclusive TV series and upgrade their platform to offer better services to its customers.
Your Favourite Netflix Movies and Shows are Going to Cost More!
The company has a huge database of content and also produces its own original content which has become popular like House of Cards. It also has a large number of movies sourced exclusively from international film festivals. Few of USA TV shows are also aired by Netflix in Canada like CW’s Riverdale and ABC’s Scandal.
Netflix has a growing market in Canada and in 2016 it had around 5.2 million subscriptions. The television streaming market is quite competitive in Canada and many leading names are fighting out with each other.
Brands like Amazon prime are quite a hit in the country having Canadian airing rights of highly rated shows such as American Gods and Mr. Robot. CBS All Access is also set to enter the Canadian market sometime in 2018 with its 9,000 episodes from various shows. The multiple numbers of competitors and the fight to acquire rights for shows has increased the acquisition cost of the content. Though Netflix did not mention it in their statement, still it is a situation faced by all companies in Canadian television industry.
Netflix increased their prices last year in May while introducing the feature of streaming in high quality on multiple devices. This time the increase has been $1 for the basic plan making it $8.99 per month. Users can only stream standard quality videos on a single device at a time. The cost of the standard plan has also gone up by $1 ($10.99 per month) which permits subscribers to access content on two screens. Subscribers of the premium plan now have to shell out a monthly $13.99, which is a $2 increase from the previous price. Users can view high definition 4k videos simultaneously on four screens with this plan.
The company changes its prices based on local market conditions in a country. The Australian subscribers had to pay few dollars more after Netflix raised the prices in June countering the increase in local taxes. It remains to be seen how the users will respond to the move.
TV streaming service in Canada will get a major boost next year with the introduction of CBS Corp’s CBS All Access service. It is the company’s bid to go international that prompted the move and gave Canada the first opportunity to enjoy its content.
The online streaming service in the US has a huge database of content and around 9,000 episodes from its various series. Viewers will also get access to special CBS channels like Showtime without requiring a cable connection. Apart from television activities, those who fond of games playing can try out online casinos, but don’t forget to check out reviews first.
What Works and What’s Going to be the Problem?
CBS corp. has a good chance of creating a considerable grab on the market but it lacks on one ground. The copyrights of many of its shows are already purchased by Canadian broadcasters like Rogers Communications Inc., BCE Inc. and Corus Entertainment Inc. So viewers will not get to see shows like Survivor or The Big Bang Theory and some of the shows are also aired on Netflix. The restricted content may impact the number of subscribers the company is expecting.
We have to wait and see as CBS predicts they are going to have 4 million subscriptions by the end of this year. It is interesting to note that TV viewership is declining in Canada and online streaming services are giving a tough competition to the traditional form. In 2016, the volume of subscribers reduced by 1% and reached 11.1 billion viewers and the revenue fell by 2% amounting to $8.7 billion, according to the data from Canadian Radio-television and Telecommunications Commission.
It’s a Competitive Scenario Out There
On the other hand, online streaming services have gained increased number of subscriptions. Netflix recorded a growth of 52 million viewers in US alone and another 52 million from all over the world. Compared to that, 158,000 people in Canada disconnected their cable service in 2015. It can be expected that the market is ripe for online streaming in Canada and other players like Hulu and HBO Go may join the competition in some years.
With so many providers in the game, the price is also a big factor in getting subscriptions. CBS did not reveal the rates they will charge in Canada, but in the US current rates are $5.99 per month. To get a commercial free version, viewers have to pay $9.99. If the rates are any higher, then Canadian may not be too interested in joining up considering the limitation of content.
Leslie Moonves, CEO of CBS TV Network said that they were aware of the potential of online streaming judging the success of their competitors. The introduction of the service in Canada gives them the chance to directly reach the viewer on an increased scale which can be expanded globally. CBS All Access had achieved a growing domestic market and now is ready with their premium content to hit the international arena.