Netflix Raising Prices For US Subscribers Again

Netflix Raising Prices For US Subscribers Again

Netflix Raising Prices For US Subscribers Again

When exactly will Netflix prices start to increase?

UBS analyst Doug Mitchelson said the timing of the price increase coincides with what his firm expects will be a strong fourth quarter content slate that could help minimize churn.

Twitter comments appeared to be largely measured, informing others of the hike and the fact that more revenue means Netflix can acquire more content for viewers. "Mitchelson added that "[Netflix] management would be unlikely to implement such a price increase if US subscriber trends were disappointing, bolstering our confidence further".

It's unlikely the increase will deter Netflix's 100 million subscribers - especially if it comes with a promise of more high-quality original shows.

The spokesperson added that existing users will begin receiving notifications on October 19.

For new subscribers, the changes began immediately, as of Thursday, Oct. 5.

The basic plan - one screen at a time without high-definition - will remain at $8 a month.

Will you stick with Netflix through the price hike or is this a deal breaker for you? It depends if you are a current subscriber or a new subscriber.

Just past year, Netflix hiked the member rate for the standard HD plan to $9.99, a whole dollar increase from $8.99.

This year, the company has is spending $6 billion and has plans to raise that amount to $7 billion next year. Back in 2011, the company saw hundreds of thousands of customers drop its service after it said it would no longer include streaming and DVD rentals in a single subscription.

Although the price change will take effect in the United Kingdom and the U.S., it will also impact some European countries like Germany and France.

It's understandable that people would be upset over price increases, but these probably aren't the last ones that consumers will have to deal with.

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