Netflix has announced that new subscribers will now have to pay $1 more than the industry-defining $7.99 per month price to access its streaming library. Users outside of the U.S. may also get relatively bigger price rises.
For example, UK subscribers will see prices raised by £1 more than the previous price of £5.99 per month - a 16.7% rise compared to the 12.5% rise for U.S. subscribers. To offset the higher cost in the UK, Netflix is testing a new subscription package at the original £5.99 price point, which limits the streaming quality to standard definition and to only one screen at any one time. A £8.99 is also now available for four-screen simultaneous streaming (the standard and newly priced £6.99 plan allows two simultaneous streams). Similar plan changes are expected in other markets, including the U.S., some time in the future.
Netflix justifies the price rise as being necessary for continue to add new content to the growing Netflix library, and to offer more original shows such as The House of Cards and Orange is the New Black.
Existing Netflix customers will get a temporary reprieve - prices will stay frozen for 24 month for those that are currently paying at the previous price points.
