Netflix To Raise New Subscription Costs & Make Its Way To US Cable DVRs

With over 38 million subscribers, Netflix has announced their plans to raise subscription costs for new members by $1-$2 per year. The reason for this increase was mentioned on a recent earnings call. CEO Reed Hastings defended the price increase saying it was a result of rising content costs. With their hit original series House Of Cards and Orange Is The New Black having multiple seasons each, the production costs associated with these originals are likely a large culprit.

Existing subscribers will be grandfathered in at their current rates for a “generous amount of time” which means everyone will eventually be bumped up to this higher rate. This price hike is expected to be happening sometime this quarter. The Amazon Prime subscription which offers their competing Amazon Prime Video service also received a recent price hike so the timing is suitable for Amazon to follow suit.

Additionally, Netflix announced their plans to partner with cable providers to include a Netflix app on US providers' DVR units. This will be a gradual rollout and it will first start with providers who use TiVo DVRs with a hopeful expansion to others in the near future.

Source: Engadget
Photo Credit: Marit & Toomas Hinnosaar