Netflix raising prices

Netflix raising prices

In a letter to shareholders, Netflix CEO Reed Hastings announced a price increase for new users to Netflix.

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

Rates for existing subscribers would remain unchanged for “a generous time period.”

This is nothing new, nor unexpected. Netflix had previously raised prices by decoupling streaming from DVD-by-mail, and to Blu-ray Disc subscribers. With the amount of content Netflix has been buying, including original content, it was all but inevitable costs would go up. And that’s not including the costs Netflix have paid to Comcast to keep their streaming bandwidth high.

About Steven Kippel

Steven Kippel has worked as a systems designer for a leading high-end audio/video custom integrator in Southern California since 2003. He is responsible for researching new technologies and integrating them into existing systems and new construction projects. He has designed several high-profile systems for discriminating clients on the cutting-edge of technology. When he is not hard at work, Steven is spending time with his wife, playing with his band or promoting concerts and bands in the Inland Empire. His favorite bands include The Cure, U2, Eisley, Living Sacrifice and DragonForce.

View all posts by Steven Kippel →

Leave a Reply

Your email address will not be published.