“As a thank you to existing Netflix members – who aren’t already benefiting from grandfathering – we will maintain their current price for a year”.
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The standard plan, which lets users stream movies and television shows in HD on up to two screens simultaneously, is Netflix’s most popular offering.
In its most recent earnings report, the Los Gatos company said it expected to spend $5 billion on global content in 2016.
If this news sounds familiar, it’s because in May 2014 subscription prices rose from $7.99 to $8.99 for new members.
But those efforts come with big price tags, prompting the company to raise prices once past year in addition to the most recent hike.
The online streaming service has made its “standard” plan – which allows two simultaneous streams – $1 more expensive, now costing $9.99 a month.
Netflix’s last price increase, of $1, came in May 2014.
Netflix adjusted its pricing in Europe in a similar way over the summer. But it does show that price continues to be a sensitive subject for Netflix.
The company’s cheapest option, which costs $7.99 a month for one person, can’t be shared and doesn’t offer high-definition video, will be unchanged.
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Current subscribers will be locked into the $8.99 rate for 12 months-unless they’ve been guaranteed even longer than that by a special promotion-but after that, the cost will go up the extra dollar.
