Monday, April 21, 2014

Will Netflix's Price Increase Affect You?

netflix price increase

New Netflix customers will have to pay more for the streaming video service in the coming months, with prices expected to rise either $1 or $2 sometime later this year.



The company made the announcement Monday while sharing a quarterly earnings report, and noted that a similar price increase implemented in Ireland did not have a negative effect on subscription numbers. Unlimited Netflix streaming currently costs $7.99 per month in the United States.



Netflix noted that existing customers would not be affected by the price hike right away, but would eventually have to cough up the extra dough after an unspecified period of time. A statement from the company said that customers in Ireland were grandfathered into their current rates for two years; U.S. members would receive "a generous time period" cushion.



"In the U.S. we have greatly improved our content selection since we introduced our streaming plan in 2010 at $7.99 per month," the release said. "Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only. ... These changes will enable us to acquire more content and deliver an even better streaming experience."



Only time will tell if customers are satisfied with that explanation.



[via: Business Insider]



Photo by Ryan Anson/AFP/Getty Images



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