Netflix confirms US price increase by $1 to $8.99

By , May 9, 2014

Netflix 5.3 for iOS (iPad screenshot 001)

Last month, Netflix announced plans to raise prices for new subscribers later this quarter. The video streaming giant has officially detailed the price hike, going into effect today.

In the United States, new Netflix customers will be paying a dollar more, raising the subscription fee from $7.99 to $8.99 per month. Similar price hikes will be put in effect in Netflix’s key markets in Europe. Existing customers will be exempt from paying extra for 24 months.

Read on for the full details…

According to CNET, customers in the United Kingdom will pay an extra £1 per month, or about $1.7, with prices in Europe increasing by €1 (approximately $1.38). These price changes, Netflix’s first in nearly three years, are valid as of today, a Netflix spokesperson said in a statement obtained by The Asociated Press:

To continue adding more movies and TV shows and delivering a great streaming experience, we previously announced that we planned to increase our price slightly for new members.

That increase is happening today.

“The increase means that new customers (or existing customers still subscribed in two years’ time) will pay £6.99 per month for Netflix, or €8.99 in mainland Europe, says CNET.

The previous £5.99 per month option (about $10.1) will remain available, restricting streaming to one screen at a time and the stream resolution to standard definition. The £8.99 option (about $15.16) enables an improved Super HD resolution and allows for four screens at a time.

Existing customers pay nothing extra for 24 months, according to an email Netflix sent to subscribers. “As a thank you for being a member of Netflix already, we guarantee that your plan and price will not change for two years,” reads the message.

The old price of $8 per month will continue until May 2016 for Netflix’s existing 36 million U.S. subscribers.

Friday last week, Netflix announced that it has now started streaming shows in 4K resolution, also known as Ultra HD. This enables a whopping 3,840-by-2,160 resolution, 10-bit color precision, richer colors and framerates up to 60 frames per second.

Today, our catalog of Ultra HD 4K movies and shows is small but packs a punch: the second season of the Emmy Award winning show House of Cards, and several nature films from noted photographer and filmmaker Louie Schwarztberg.

Later this year, we expect to add another multi Emmy Award winning show Breaking Bad, and more Netflix original productions. As more content producers shift their production and mastering to create Ultra HD 4K output, and more Ultra HD 4K TVs are in the market, we’ll bring more of that content to you.

The much improved image quality needs additional throughput for the stream, so streaming in Ultra HD requires available bandwidth of at least 20Mbps, 16Mbps for the stream itself, “plus headroom for service variability.”

Netflix has long been on Apple’s platform and has a nice iPhone and iPad application, available free in the App Store.

Netflix on its part argued that these price changes will let it “acquire more content and deliver an even better streaming experience,” but I’m not so sure about that, could be just a lame excuse.

Is this price hike justifiable, do you think?

Could this be viewed as a fee related to Netflix paying a ransom to Comcast and Verizon for using their pipes to stream entertainment?

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  • Jordan Dixon

    “Price hike”. It’s a dollar. That’s like hiking up a sand castle.

    • http://www.idownloadblog.com/author/dujkan Christian Zibreg

      Times 12 = $12 per year

      • blu

        Wow, $12 is going to break me.

        If it does really help them get more content then I am all for it.
        And it is nice they are not raising current customers for 2 years (saves me a whole $24).

      • Antzboogie

        Dumb people like you are why these corrupt companies will continue to raise prices what happens whens its $2 next time or $3 will you have the same opinion? I doubt it, and stop thinking about yourself and worry about other people who are stuck on the ever frozen minimum wage in NYC at least. Netflix and Comast=Scam

      • ✪ aidan harris ✪

        Exactly! Netflix really should focus on improving their service before charging people more. Multiple people use Netflix in my house and so many devices that run Netflix are completely inconsistent. For example while the cable box that my Mother watches Netflix on works fine there’s no profile switching feature so everyone either has to use the same profile and corrupt all the recommended films and tv programs or I have to do what I’ve done now and create a profile for myself and change the main profile to my Mother…

        /YetAnotherRant

      • Blip dude

        I will, wanna know why?? Because paying an extra $3-$5 in 5 years will still be better than paying $100 for s*** that is on cable that I don’t even watch.

        I do agree that Netflix should focus more and delivering much better content than just raising price. But I will personally be just fine with increase for a service I do actually use. I am aware of the comcast scam but I did the somewhat smart thing and got rid of Cable/Satellite altogether.

      • blu

        Why am I dumb? Name calling is always a sign of intelligence and a great way to get your point across.

        If by paying an extra $1 a month helps them get better content for users, what’s the issue? And if the price goes up $2 or $3, then I don’t know if I will feel that same. Everyone has their point, $1 is not mine.

        And why should I not worry about myself? Your apparently worried about yourself. I used to make minimum wage. I went to school and got a degree, now I don’t make minimum wage.
        If you don’t like it, do something besides complaining.

      • JailBanksters

        Sure $24 US Pesos is not going to kill you, butt…..
        If all other companies are putting up their prices 10-20% and your not getting paid anymore. While the Club FED continues to sell the NO Inflation line.

        The US is now right on the edge of Hyper-Inflation

  • blastingbigairs

    Now if they’d just add some decent movie selections people wouldn’t care, but NetFlix has always been subpar. They better step it up, or I’m stepping out for that price.

  • onesimpleclickk

    This is non-news. If your the type of person who is insulted by a $1 ‘price hike’ in the cost of your Netflix subscription, you should think about reevaluating your life.

    • Antzboogie

      Oh hush they are scamming us dont you releaze they did a fake deal with Comcast to justify this do your homework before you talk around grown man.

  • Ara Rezaee

    Time to use those “shared” passwords again! :)

  • Ahmed Karoui

    MovieBox all the way! :D

    • Sean Clark

      Gee, a service that streams virtually every movie you could want for free. I wonder how they got that licensing deal. /s

      • Antzboogie

        Dont hate just use the app its way better then Netflix and shut up.

      • ✪ aidan harris ✪

        Of course it’s way better than Netflix. When you ‘pirate’ other peoples works you aren’t bound by the draconian terms of the monopolistic entertainment industries meaning you can do whatever you want including having 100% device support or no DRM (the primary reason Netflix is still not available on Linux based computers since the DRM companies they use don’t support Linux yet somehow managed to get it working on Chrome OS)…

      • blastingbigairs

        Kickass torrents all day!!!!

  • Eric M

    2 years at my current price is a nice thing. Should be

  • Cody Cutrer

    Heh, Comcast raises my internet price more than $1 per year, without telling me. It just shows up on my bill every once in a while.

    • Antzboogie

      Thats why we need net neutrality.

  • highNiggaPie

    Didn’t they do this before and it made everyone stop using netflix and their stock drop? Either way torrents ALL DAY!!

  • Mark Lopez

    Just jailbreak and get moviebox blows Netflix out of the water

  • Paymon John Vafa

    For sure net neutrality was the topping point to justify the hike.

  • https://twitter.com/MrElectrifyer MrElectrifyer

    For such outdated database in Canada, couldn’t justify paying $8.00/month, increasing that price with the same outdated content is a definite no no. Popcorn Time all the way…

    • Antzboogie

      Agreed Netflix and Comcast up to something diabolical.

      • master94

        Netflix is just trying to recover the cost of paying Comcast for access to better speeds. Comcast is evil, netflix is just trying to live .

  • iThinkergoiMac

    Of course it’s not a “lame excuse”. You can’t expect them to continually improve their service at no extra cost to the user. Netflix is getting into (really good) original content, which costs MUCH more than simply gathering content to play from existing sources. If Netflix continues to put out content like House of Cards and Orange is the New Black, I’ll gladly pay more to have that continue.

    Remember, Netflix is HUGE. It makes up 50% of the US Internet traffic in the evenings. That’s absolutely insane. The cost of building that kind of backbone is astronomical. Between that and the deals they’re making with Comcast and Verizon, they’re justified in raising their price. Besides, it’s an exceptionally small price hike. $12/year is nothing. If you can’t afford the extras $1/month, you shouldn’t be paying for Netflix; you have bigger financial problems. However, it’s a huge payout to them. In 2016, they’ll get an extra $432 million from the existing 36 million customers (assuming no one drops the service). It’s a smart move.

  • ✪ aidan harris ✪

    I don’t understand how / why they could increase the price without improving anything. There’s still way more things in the US than the UK (not that this bothers me thanks to VPNs) and despite there supposedly being HTML5 support now Netflix still only works on OS X and Winblows. It works on Chrome OS these days too which makes you think ‘how much did Google pay them?’ since it doesn’t work on any other Linux based operating systems or any other operating systems…

    /rant

  • Vckmkr

    Thats a ship load of extra dollars, and like a commenter says most consumers will consume it with no thought.