Netflix (NASDAQ:NFLX)’s 4K/UHD increase in price is not well received by its users

Netflix (NASDAQ:NFLX) has been very successful ever since it started with its online movie rental programme in America, with a low monthly subscription fee. The company has more than 50 million subscribers in the global market. Netflix (NASDAQ:NFLX)’s strength had been in its outstanding market intuition, clarity of vision, low subscription fee and remarkable technical prowess. However, the latest announcement about Netflix (NASDAQ:NFLX)’s intention of charging its UHD/4K viewers higher monthly subscription fee might change the scenario.

Netflix (NASDAQ:NFLX) declared that if you are using 4K TV prior to 12^th August, then the rise in the price will not affect you until August 2016. For everyone else who has not been using the 4K TV before 12^th August, the monthly fee will increase and instead of paying $7.99 or $8.99, the subscribers will now have to pay $11.99.

This increase in subscription fee is almost 50%, and the new pricing structure is very confusing. The complexity in pricing is not new to the TV world, where cable and satellite TV providers offer viewers with complex price packages.

Netflix (NASDAQ:NFLX)’s UHD price approach indicates that its services will no longer be affordable for everyone.

Netflix (NASDAQ:NFLX) is seen as a company that provides access to all its services through one single subscription. This is what attracts many of its subscribers and the fact that now they won’t be able to access some of the content present on the site will be a huge disappointment for them. Also, the UHD has a limited stock of 4K material right now, and the extra charges do not leave users with much choice. Although the company might argue that 2015 will bring many more options; the point is that it would have made more sense if the price had increased when more content was available.

Another argument for the increase in price is that UHD/4K movies cost more than the regular ones, and the price rise is to cover the company’s technical expense.

UHD/4K is gaining popularity, and it is just a matter of time before it starts becoming available for consumers. Even Amazon (NASDAQ: AMZN) is coming up with the same technology. Amazon (NASDAQ: AMZN)’s set price for the service is not known yet but the point is that if the technology becomes available in the market then Netflix (NASDAQ:NFLX) will have to compete with the rivals and struggle to keep its customers.

Netflix (NASDAQ:NFLX) already declared that it had fewer subscribers in the third quarter of 2014, and its share price had gone down a 25% in one day. The executives of the company placed the blame of the low shares on the price rise that was announced for its streaming services. If a small price rise can affect the subscriptions in this manner. One can only imagine what UHD/4K price rise will have on the company. It remains to be seen whether Netflix (NASDAQ:NFLX) will realize the damages it might have to endure for changing the price package at the wrong time.