Netflix has slashed their monthly cost for the online video streaming service to $6.99, saving users an additional $1 every month. Though this isn't that big of a savings that should draw much attention it does mean that it is possible to get services to compete in lowering their prices while offering more content. Amazon Instant Video, HBO Go, Hulu+ and other video streaming services might also look to lower their prices as well at sometime during the next year to drive more users into what they have to offer while offering the best content.
The Netflix $1 price cut will be for those accounts that are viewing the streaming content on one screen only, so it looks like college kids will have another buck for booze every month. Having multiple screens that share a single Netflix account can be a huge bandwidth hog. The more streaming content in HD format is being consumed, then the more it costs Netflix and cutting in their profits. This could limit those while also imposing a new set of rules for single screen viewing for less bandwidth usage with only losing a $1 per user in monthly profits which could be more profitable than having the higher bandwidth use it’s currently enduring.
Studies are showing that Netflix and YouTube as consuming just over 50% of all bandwidth content on the internet during peak hours, so the bill can only be imagined for holding down half of the internet in the United States at any moment. Netflix just surpassed over 40 Million monthly subscribers and looks to gain more by releasing original content like Orange is the New Black and House of Cards.
Do you use Netflix for majority of your entertainment? or do you still use basic cable? Streaming content looks to be the future of where entertainment is going to be in the future, but what works best for you? Xbox and PlayStation each have their own entertainment platform as well, does your household use one of those? Leave your comments below with your thoughts on streaming digital content and the prices you pay.