Netflix 7.0 for iOS (iPhone screenshot 001)

Did you sign up for Netflix’s $7.99 per month plan with high-definition streaming before new pricing tiers were unveiled?

If so, the company will reward your loyalty by slapping you with a price increase later this year, according to Netflix’s letter to shareholders issued yesterday as part of the company’s quarterly earnings release.

Grandfathered Netflix customers in the United States will have two choices: continue using their $7.99 per month plan, but only in standard definition, or choose to pay $9.99 per month to continue watching in high definition.

“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,” wrote the company.

As a result, Netflix expects “only slightly elevated churn.”

During the December 2015 quarter, Netflix added 5.59 million new customers and now has an overall subscriber base of 74.76 million members, 45 million of which are in the United States.

In 2016, Netflix plans to launch over 600 hours of original programming, up from about 450 hours in 2015, including new seasons of about 30 original series—including “The Crown” and “The Get Down”—as well as eight original feature films, 35 new seasons of original series for kids, a dozen documentaries and nine stand up comedy specials.

Following its expanded global rollout earlier this month, Netflix promises to add new languages, new payment options and fine‐tune its algorithms.

Source: Netflix via The Next Web