Is a Netflix Price Hike Imminent?
Netflix, as much of a decently priced necessary evil that they are has been toying around with the thought of raising their monthly subscription costs (currently at $7.99 for streaming only accounts) to offset the issues raised with the ruling on net neutrality and their ever expanding library of great content.
In a letter to the company’s shareholders this past Wednesday, they stated that they “hope to offer new members a selection of three simple options to fit everyone’s taste.”
That’s all well and good for new members, but what exactly does that mean for those of us who have been Netflix users for a long time? Again from the letter:
If we do make pricing changes for new members, existing members would get generous grandfathering of their existing plans and prices, so there would be no material near-term revenue increase from moving to this potential broader set of options. We are in no rush to implement such new member plans and are still researching the best way to proceed.
So yes, the price increase is coming, but it seems those of us who have been around for a while will be ok. Considering if the generous grandfathering they speak of is anything like that which they offered their European customers (which went up by one Euro a month recently), we can look forward to two whole years of the price being fixed where it is while the “newbie tax” is shuffled off to the late adopter.
Good plan, is this the same Netflix ran by Reed Hastings who announced Qwikster?