Netflix Price Increase For 17 Million Customers

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Netflix is raises its prices next month for some of its early subscribers.

Two years ago, Netflix was in the news when it announced they were raising the price of their subscription based streaming service.

hqdefaultBut, in order to avoid an uproar, current subscribers would stay at the $7.99 rate for two more years. That will end next month. Everyone will now pay the same rate of $9.99 per month for the HD streaming service.

Everyone will now pay the same rate of $9.99 per month for the HD streaming service.

A letter was sent out in January which said: 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.

 

A study done by JP Morgan suggest that 37% of their customers, which is around 17 million, will be impacted by this price hike. 80% of them may not even know it is coming.

As reported by Business Insider ,UBS estimate  that only 3 – 4% of these subscribers will actually cancel their service. Many people will be upset and threaten to cancel, but once they realize the cost to this entertainment is cheaper than other options, they will change their mind.

Orange_is_the_new_BlackIn comparison to other streaming services, Netflix is affordable. HBO Go is $15.00 per month and commercial free Hulu is $11.99 per month.

There is good content, unique shows, and it provides an option for someone who wants to cut the cable cord. The price of Netflix has not gone up nearly as fast as cable companies, so a price increase seems logical.

Personally, I enjoy Netflix and I believe it is worth every penny. If you have never watched Orange is the New Black or Making of a Murderer, both Netflix original series, I would highly recommend them.

There is also lots of content for families and kids, which makes Netflix an affordable option for a Friday night at home.

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