Are Subscription Plans Better off than TV Service?

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Many people ask themselves this and usually answer with a yes. The reason subscriptions plan are better than TV service is because they can watch whatever they want, whenever they want. Over the last year,” Netflix, one of the lead subscribers has chosen to raise the prices only by $1 or more on their most popular subscription plans” (2017, p. 1-2 ). Netflix is able to raise their prices only by a few bucks because “The service offers tremendous value even at the higher, but still very low, monthly costs”, as stated by Micheal Greeson, who is the president and principal analyst for the Diffusion Group, a research film in Plano, Texas (2017, p. 3). “Additionally helping aid all this: the growing number of homes with broadband Internet service, expected to hit nearly 100 million this year, up from 97.6 million last year, according to The Diffusion Group.

The number of broadband homes has surpassed those who pay TV service, the research estimates” (2017, p. 9). There are multiple broadband services a person can choose from, including Hulu, Netflixs biggest competition, and Hulu, however with that being said, Netflix is the greatest deal. “Even with more customers cutting the cord on TV service, reality suggests that Netflix and other Internet video services are attracting even more customers who already have traditional pay-TV packages than those who have cut the cord or who have never had pay TV”(2017, p. 22) . At the end of the day, “It will likely take more than $1 to $3 price hike–$12-$36 a year–to convince a subscriber to drop Netflix, Amazon or Hulu” (2017, p. 28) . People do care about their spending, especially this day in age but because it is such a minor change, it is worth keeping. Some people do not want to go out, some people just want to stay in with friends with some buttery popcorn and others are not able to go out like everyone else so it really helps people like that, and those are only a few examples.

To prove that people care about their spending and others do not, I have taken a quote from a review website announcing “According to a analysts at USB, though almost 80 percent of the estimated 17 million subscribers who were allowed to keep the cheaper rate, don’t even know that the price hike is coming up” (Fratti, 2017, p. 1). If that does not say anything, I am not sure what will. Here is another review by another Netflix streamer expressing her unhappiness for all to hear, “If I were you, I would cancel all my plans for the foreseeable future and just watch all of those shows you’ve been missing out on right now” ( Shrayber, 2015, p. 1). It really just depends on the person, financial state, and if you notice the price change, otherwise continue using Netflix.

An economic idea mentioned in this article would be a club good. A club good is defined as “nonrival in consumption and excludable” (p. 229). Netflix is a an example because “it is an excludable since you have to pay to receive the service, and nonrival in consumption because more than one customer can receive the service at the same time” (p. 229). More people are inclined to participate also because “Markets tend to provide thee good for them” (p. 229). In the business world where competition is all around, “It comes down to profit, not amount of people they serve.” To make profit, “The market price is raised, and output is lower than what society desires” (p. 229). Hulu, Amazon, and Netflix all strive for the same goal: Provide exceptional service conveniently and at a fairly low price.

In my opinion, the events in the article make sense, mostly because without steady income no firm can run. I understand why the company chose to only up the prices by a couple dollars, because it is not very noticeable nor is it so expensive the average person cannot afford it. For the longest kind of time, about a year I had been using Netflix, thinking it was the considerable subscription plan out there. Honestly, when my account was charged more than the subscription plan I was paying, which happened to be about $8, I did not know about the price increase until about 2 months later. For what you are getting out of the subscription plan, it is unbeatable even compared to Hulu, Amazon, HBO, and many many others. Once I am able to get my Netflix subscription plan back, I will.

The Christian response to this situation would be to accept that Netflix must raise their prices to keep up with the competitive market and other competitors, such as HBO, Amazon, and Hulu. Instead of insisting to the company that it is not the right thing to do, just let it pan out. Proverbs 12:16 reminds us that wisdom is being silent, as quoted “A fool is quick-tempered, but a wise person stays calm when insulted” (Proverbs 12:16). That is not to ssay that you should deal with the company miss-charging you or worse, but do not let the company $1-$2 change effect your life. Trust God and he will guide you. Another verse to remind us about how the Christians should deal with this issue is Psalm 34:4 stating “I prayed to the Lord, and he answered me. He freed me from all my fears” (Psalm 34:4). Psalm 34:4 tells us to pray, seek him, and the rest of life will workout, as it always does and will.


Fratti, K. (2016, April 9). Reactions To Netflix’s Price Increase Show That No One Knows How Much It Costs Anyway. Retrieved from

Girls Life Application Study Bible: edition of the Holy Bible, New Living Translation, Carol Stream Illinios: Tyndale House Publisher’s, Inc., 1996, 2004, 2007. Bible.

Netflix price hike probably not the last for cord cutters. (2017, October 7). Retrieved from

Norton Ebooks. (27, 11). Retrieved from

Shrayber, M. (2015, July 17). Netflix Just Announced Some Pricing News That Will Leave You Heartbroken. Retrieved from

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