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.