Netflix will raise the price of its all-you-can-watch streaming service by $1 to $2 dollars per month. The change goes into effect within next two to three months for new members in the U.S.
According to TheWrap, Netflix CEO Reed Hastings and CFO David Wells delivered the news in a letter to investors earlier today. The letter said, “Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only”.
This is the first rate increase since Netflix’s disastrous attempt to spin off its streaming service into a separate company in 2011. That move was so universally disliked Netflix reversed its decision, never actually implementing the plan.
The current price hike looks much more likely to stick. It was first tested in Ireland where, according to the company, it had “little impact”. The new rate has long been expected by media analysts due to the rising costs of licensing and producing content for the streaming service.
Lest existing users think they’re getting a pass, the letter also included the following ambiguous language, “Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period.”
According to TheWrap, Netflix CEO Reed Hastings and CFO David Wells delivered the news in a letter to investors earlier today. The letter said, “Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only”.
This is the first rate increase since Netflix’s disastrous attempt to spin off its streaming service into a separate company in 2011. That move was so universally disliked Netflix reversed its decision, never actually implementing the plan.
The current price hike looks much more likely to stick. It was first tested in Ireland where, according to the company, it had “little impact”. The new rate has long been expected by media analysts due to the rising costs of licensing and producing content for the streaming service.
Lest existing users think they’re getting a pass, the letter also included the following ambiguous language, “Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period.”
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