Is Another Netflix Price Hike in the Works? | The Motley Fool

Video streaming giant Netflix’s (NASDAQ:NFLX) worldwide expansion continues to progress, and one key pillar of its strategy is growing its library of original content developed specifically for various foreign markets. Populating its platform with locally produced fare should entice more subscribers in those countries, and the company plans to spend a not-insignificant fraction of its $7.5 billion to $8 billion original content budget this year on such series and films.

While Netflix is currently issuing debt to finance the growth of its content library, the company’s long-term success will depend on its ability to not only grow its viewer base, but also to boost the prices it charges subscribers without causing too many to cancel.

In that vein, reports have recently emerged that the company is testing an “ultra” tier that may be a harbinger of things to come.

Read complete article here:

Is Another Netflix Price Hike in the Works?.