Netflix is Planning to Increase Prices by $1 or $2 a Month

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Netflix is planning another price increase. The details were revealed in a report to shareholders. The note says they are planning to increase the monthly streaming price from $7.99 to $8.99 or $9.99. It talks about grandfathering current members for a "generous time period."
"In the U.S. we have greatly improved our content selection since we introduced our streaming plan in 2010 at $7.99 per month. Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members only. Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period. These changes will enable us to acquire more content and deliver an even better streaming experience.
Reuters reports that Netflix added 2.25 million customers in Q1 of this year (ending March 2014). They have 48 million customers worldwide. FBN Securities analyst Shebly Seyrafi told Reuters that Netflix has "room to raise prices" because of strong demand for its service. However, this doesn't mean it won't have to face a backlash and grumpy customers. If it offers a long grandfather period to current customers there will be less complaints.

Photo: Netflix

Posted on April 21, 2014

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