For new customers in the US, Canada and Latin America access to stream shows like Daredevil and Orange is the New Black will now cost $9.99 a month instead of the previous $8.99.
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Netflix last raised the price for its standard service in May 2014, when it asked for $1 more while also launching the basic tier. About one year ago, investors had balked after the business disclosed a slowing subscriber growth in the U.S.in its third quarter and blamed in a large part the price increase it rolled out during the summer. The premium plan with 4K video support and up to four streams at one time is $11.99 per month. Chile, Colombia and Mexico also are raising prices – for all three plans – in their local currencies. The company has simply told existing customers on Twitter that they would be “grandfathered in” to their current rates.
So a $1 increase in monthly plan costs might feel outrageous to a few right now, and it wouldn’t be surprising if Netflix’s subscriber growth hurts in the short term.
More than 800,000 customers canceled their subscription after the company raised its rates by 60 percent in 2011 to subscribers who wanted Internet video and DVD-by-mail rentals. It seems like every month these streaming services, cable and internet companies are increasing their prices randomly, and over a period of time, that starts to add up pretty quickly.
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Sorry, consumers – but a price hike is something that Wall Street has wanted for a while at Netflix. As a token of thanks to the existing Netflix customers, who are not benefiting from “grandfathering”, the firm said they will continue to receive the service at their current price for a year. It’s only a dollar more and if you’re sharing said account it’s less than $5 each.
