Netflix Raised Their Prices (Again) — Proving Their Customers are Captives

Late last year, I warned that a Netflix-Warner empire would mean “fewer choices, weaker alternatives, and consumers trapped paying whatever the merged company demands.” That warning is no longer theoretical. Last week, Netflix raised the price of its premium plan again, pushing it to nearly $27 a month. For families already stretched thin, this is not a minor adjustment. This hike is a reminder that when one company gains too much power within a market, consumers stop being customers and start becoming captives.

This is how monopoly power works in the real world. It does not arrive all at once with a flashing sign. It shows up in monthly bills, in shrinking leverage for consumers, and in a marketplace where the dominant player no longer has to compete for your business. Netflix has spent years building that kind of dominance. Now, the negative results are playing out in plain sight. The  price increases keep coming because the company believes millions of Americans will keep paying.

The answer is not to accept this as inevitable. The answer is competition. The Trump administration correctly recognized this when their skepticism of Netflix's attempt to acquire Warner Bros. forced the streaming giant to give up, giving smaller competitors a chance.

That is what consumers need: rivals capable of disciplining prices, widening options, and forcing Netflix to earn loyalty instead of exploiting it.