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Is a Netflix Price Hike on the Way?

Original content doesn't come cheap for Netflix (NASDAQ: NFLX  ) . Running $4.5 million per episode, House of Cards is just the beginning of the company's push into the original series space. Ultimately, Netflix wants to produce five original series each year, which could very well cost in the hundreds of millions of dollars. If Netflix cannot attract enough new streamers to support this bill, a price increase would be all but certain. In the video, Motley Fool contributor Steve Heller discusses what this could mean for investors and why it may not be such a bad thing.

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Read/Post Comments (5) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On April 09, 2013, at 11:17 AM, zocolofishing wrote:

    I'm still waiting for Netflix and/or Microsoft with the Silverlight service to provide multi-channel 5.1 or better audio for Windows 7 users like me. They force me to purchase a Roku or Xbox to get the higher quality content. I want to run everything from my PC which is connected to my HDTV.

  • Report this Comment On April 09, 2013, at 11:39 AM, geminimattie wrote:

    I for one am not interested in watching House of Cards or any such of its kind. STOP NOW BEFORE IT IS TOO LATE ... And then passing the cost on to us , John Q Public, REALLY !!!

  • Report this Comment On April 09, 2013, at 2:18 PM, fantasticed wrote:

    Why doesn't he email the subscribers and see it they will support the price increase. I for one would cast my vote yes. The subscribers keep netflix operating not the stock holders.

  • Report this Comment On April 09, 2013, at 8:10 PM, jb757 wrote:

    People are so dumb. Netflix value is so high and unmatched that a gradual .50 to $1.00 over the next year or two would absolutely have no effect on the 33 million subs, and would kick up the bottom line a little for the shareholders.

  • Report this Comment On April 09, 2013, at 8:44 PM, locsphere wrote:

    No, I already pay more and got rid of DVD service if it goes higher, I cancel all together. They just did a price hike.

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