Just a few weeks ago, rumors broke out about an upcoming price increase within the Netflix streaming service though no official details were known. Earlier this morning, Netflix issued the following email to current subscribers:
Thanks for being a Netflix Member.
Hi (Subscriber's Name),
In order to continue adding more movies and TV shows, we are increasing our price from $7.99 to $8.99 for new members. As a thank you for being a member of Netflix already, we guarantee that your plan and price will not change for two years.
You can review your membership details at any time by visiting Your Account. As always, if you have questions, we are happy to answer them. Please call us at any time at 1-888-357-1516.
–The Netflix Team
This means the standard subscription cost has been raised from $7.99 to $8.99 for new subscribers although existing subscribers will be grandfathered into the lower $7.99/month rare for the next 24 months. There are several factors that come into play when justifying the price increase whether it be rising licensing costs, higher budgets for original content, or paying to keep Internet providers from throttling speeds for Netflix users.
In the end, the $1 increase still makes Netflix's subscription price worth buying and hopefully the extra revenue gained from it will improve the service over the next few months.
Photo Credit: Micah Taylor
As a graduate of the University of Massachusetts and our Managing Editor, Colt loves testing out the newest tech products/services. His goal is to help better educate other consumers to ensure the most satisfying purchases decisions on consumer electronics and services. When he is not working on creating new content, Colt enjoys spending time with his two Australian Shepherds, Mia and Zoey.