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Netflix Price Hikes Coming Soon for All Users, Starting with New Subscribers [u]

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Netflix today announced their 2014 Q1 earnings and revealed they now have over 48 million users worldwide and quarterly streaming revenue topped $1 billion. In what was to be expected, a letter to shareholders outlines the plan to increase monthly fees for new users, while existing users will stay at current pricing “for a generous time period”:

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.

As for existing users, they won’t be immune from price hikes as Netflix CEO Reed Hastings said in an interview fees will rise in all 41 countries the company operates. As for the ‘generous time period’ mentioned in the shareholder letter, Reed clarified that will only last one to two years, reports Reuters.

Netflix has done a pretty decent job while staying at their $7.99/month price, but of course it could get a whole lot better. You do get what you pay for and a price increase will definitely allow the company to expand their libraries with better content.

Nobody likes seeing price increases, but Netflix knows most people will stick to their brand due to view exclusive titles such as House of Cards (they called Season 2 a “big hit”), plus being able to consume the streaming service from pretty much anywhere on any device. Last month, Warner Bros. bypassed Canadian cable companies and opted to exclusively stream their sci-fi series ‘The 100’ on Netflix Canada.

Also, the fact competition is relatively non-existent right now means Netflix has the upper hand, especially in Canada. That will change soon, as Rogers has a Netflix-rival in the works, while Bell and Astral Media have plans to also introduce a streaming service.

Click here to sign up for Netflix while it’s still $7.99/month—the first month is free. Would you be okay with a $1-$2 Netflix increase? Or would that make you want to cancel the service?

Update April 22: Netflix tells the CBC a more definitive timeline for price increases for new members, which will happen within their current fiscal quarter, before June 30:

Netflix has confirmed a price increase for new subscribers in the U.S. and Canada.

A company spokesman said it would be a “modest” increase of $1 to $2 and would go into effect this quarter (before June 30) for new Netflix members.

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  • Jason C

    I would gladly pay $10 a month, especially if they will provide more and better content. Even at $10 it’s still a great deal, plus I already pay $10 a month for a music streaming service so $10 sounds fair for a video subscription.

  • Yeah an increase of a couple bucks is nothing to really worry about, it just comes down to the content they can bring.

  • David

    It would make me reevaluate if I really want the service. Could be enough to make me drop it. The $2 on its own isn’t a lot but everything seems to be going up a few bucks except my pay cheque. So then something has to give.

  • poops

    $8 a month, is a steal. I wouldn’t have a problem paying more – especially if it gets us a better selection, and more exclusives.

  • Harold Mitchell

    US Netflix has much more content than here in Canada…access with a VPN or browser extension.

  • youreallyhavenoclue

    Hola! Better Internet has been working great for me as a Chrome extension 🙂

  • Jimbeau

    Depends on what their profits are currently. If their revenue is $1 Billion as is, any price increase better be tied to a significant increase in service or programming, especially with competition on the horizon.

  • Chrome262

    still cheaper then buying full season subscriptions or buying content OnDemand from rogers.

  • Chrome262

    Me too, but Actually I have dropped Unblock-Us (a Toronto company) because more and more content is making it to the Canadian side. Even the new Dusk till dawn series is here.

  • Chrome262

    I have a feeling their over head cuts into the profit big time (licensing in Canada alone is pricey), and the increase is to off-set that. I agree though, if their profit is still in the 100s millions range then they should spend what it takes to make it worth the 10 a month

  • OliChabot

    Just wish they offered a better library of french translated movies and TV Shows. Then i would be a proud subscriber.

  • sukisszoze

    At least it’s month to month and no contract so consumers get the final say on any price increases. It’s pretty good value at $8 or even $9 per month. Our kids watch their shows on Netflix more than cables.

  • Steve

    If their content can match that of the US, then sure charge away. But is charging more for the same crappy content fair?

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