TV and movie streaming service Netflix is raising the subscription fee in the U.S. by $1, bringing the monthly cost to $8.99. The fee will only apply to new subscribers, however: existing members will be able to keep their current subscription price for two years.
Netflix CEO Warned Users of Price Hike Last Month
This news doesn't come too unexpectedly following the company's warning that the price would be increasing. Netflix told us the added cost would only be a dollar or two, which it is, and that current subscribers would get a grace period prior to the price hike.
$8 per month still represents a good value in comparison to the packages offered by cable companies, and it's understandable that a small increase to every customer will go a long way for Netflix's infrastructure. The extra funds will allow to company to "add more films and programs" over time.
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If the new price won't even impact existing members until two years from now, it's safe to assume that this is the subscription fee that's here to stay for the foreseeable future. A price hike of only a few dollars over several years is pretty reasonable, and you shouldn't have to worry about it going up again until after that period.
"Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only," said CEO Reed Hastings to shareholders back on April 22. The streaming company has done exactly that, and while nobody really wants to pay more, not too many can complain about such a modest increase.