Netflix, Inc. (NASDAQ:NFLX)’s move to increase the price of its most premium subscription is in preparation for the future of television, a report from Lucas Shaw on Bloomberg’s BWest Byte reveals.
“[…] Netflix is getting ahead of the curve and saying ‘if [Ultra-High-Definition televisions do] become something that’s really popular, we’re going to offer a different service and at a higher price’ which obviously makes Netflix shareholders happy,” Shaw said.
Nonetheless, the move by Netflix, Inc. (NASDAQ:NFLX) will not be felt by a lot of people, the Bloomberg reporter implied, because not a lot of people own UltraHD or 4K television sets which would convince them to opt for the company’s Platinum plan. This plan lets people stream 4K content to their 4K-capable displays.
Though there are still few people who have 4K televisions in their homes, Shaw said that the television industry is very excited about this new standard and that they believe that this will be the future of the television.
Netflix, Inc. (NASDAQ:NFLX) still is in the process of growing its content that is available in the high-quality UltraHD format, Shaw said. Nevertheless, the company is continuing to do so, he added.
Meanwhile, Shaw also mentioned the recent deal between the content streaming company with CBS Corporation (NYSE:CBS) which adds CBS and Showtime content to the Netflix services available in Europe.
Netflix, Inc. (NASDAQ:NFLX) shareholders includes Philippe Laffont’s Coatue Management which reported owning about 2.08 million shares in the company by June 30.