Netflix Will Increase its Price for New Members

Netflix will raise the price of its streaming service for new members by $1 to $2.

This comes just three years after the company’s disastrous hike in price when the company attempted to sever the DVD-by-mail plan from its wider known and used streaming service. The raised price was tested in Ireland, and the company reports that there was “little impact.”

“Existing members would stay at current pricing for a generous time period.”

Netflix CEO Reed Hastings and company CFO David Wells sent a letter to investors earlier today. In the letter it read, “Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only.” With that said it doesn’t mean current subscribers are untouchable when it comes to the increase in price. The letter also stated, “Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period.”

Analyst and media experts have long predicted this move on Netflix’s behalf. With licensing costs for movies and TV shows rising and the production of original content, the company is spending dramatically more to keep up with it all.

“Orange is the New Black” (June 6) and “Hemlock Grove” (July 11) are back this summer for their second seasons and recently obtained series, “Marco Polo” premiering later this year.

Update: Netflix has officially raised the price to $9 a month in the US for new new members.

How do you feel about the price increase? If you are not yet a member, does this repel you from getting the service? Let us know in the comments below.

Via: IGN
Source: The Wrap