Netflix raised their prices two years ago to $10 per month but promised loyal customers (or “grandfathers”) that their rates will remain the same for two years. The time is finally up for many long-time Netflix subscribers.
“In Q2 and Q3, we’ll be releasing a substantial number of our US members from price grandfathering on the HD plan and they will have the option of continuing at $7.99 but now on the SD plan, or continuing on HD at $9.99 a month,” reads the Netflix letter to shareholders. “Given these members have been with us at least 2 years, we expect only slightly elevated churn.”
The streaming platform currently boasts 45 million subscribers in the U.S. and 75 million worldwide. The global figures will grow significantly this year, as Netflix announced at the Consumer Electronics Show in Las Vegas earlier this month that the platform will be available for users in every country except China, North Korea, Syria and the region of Crimea.
“With this launch, consumers around the world -- from Singapore to St. Petersburg, from San Francisco to Sao Paulo -- will be able to enjoy TV shows and movies simultaneously -- no more waiting,” said Netflix CEO and co-founder Reed Hastings at CES. “With the help of the Internet, we are putting power in consumers’ hands to watch whenever, wherever and on whatever device.”
New subscribers now have three different plan options: basic ($7.99), standard ($9.99) and premium ($11.99).
