Netflix to Bump Prices For New Subscribers Soon
Posted by Jeremy Thomas on 04.21.2014
By a buck or two...
If you want to get in on Netflix and for some bizarre reason haven't yet, now's the time. In a letter to investors today, Netflix CEO Reed Hastings and CFO David Wells revealed that they will be raising the price of their streaming service by a dollar or two for new members only.
Variety reports that the letter read, "Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only".
Netflix hasn't raised their prices since just before their infamous attempt to separate their streaming and DVD services into separate companies, which sent their reputation into a tailspin. While it took them a long time to win back the public's trust, they've obviously recovered since; they reported 4 million new worldwide subscribers in the first quarter of the year, bringing their base to 48.35 million across multiple companies.
The new price increase was tested in Ireland, one of their smaller markets where the company said it had "little impact." A higher price has been expected for some time; between their new content such as House of Cards or Orange is the New Black and licensing existing content from the studios, Netflix spends an enormous amount of money.
Existing subscribers will eventually bear the cost as well; the company said that existing customers will stay at current pricing ($7.99 per month in the US) for one to two years, which they called a "generous time period."