October 9, 2015
Rate Change Is Immediate For All New Customers, Starts in October 2016 for Current Customers
Netflix prices are going up.
The price for Netflix’s most popular plan — which offers HD programming and two simultaneous streams for each customer — is going up by $1 a month, from $8.99 to $9.99.
The rate change is effective immediately for all new customers in the U.S., Canada and parts of Latin America. Existing customers have until October of 2016 before they must pay the increased rate.
The cheaper non-HD $7.99 per month plan is still available.
Netflix CEO Reed Hastings said back in July that rate increases would be coming to help the company cover the costs of producing its own original content.
The company has allocated approximately $5 billion to produce original content in 2016.
The decision comes after the success of its Netflix Original series shows like Orange is the New Black, The Unbreakable Kimmy Schmidt, Marvel’s Daredevil and Sense8.
“We want to take it very slow,” Hastings said in a July earnings call with investors. “Over the next decade I think we’ll be able to add more content and have more value and then price that appropriately.”
Hastings also said Netflix plans to “motivate people to move up to the two-stream and the high-def and the ultra-high-def” packages which offer better quality viewing.
Jennifer Cowan is the Managing Editor for SiteProNews.