Netflix has today announced that it has increased the subscription charge for new customers to $9.99 for the most popular Netflix HD subscription that was previously priced at $8.99.
The move follows on from a similar price increase throughout Europe back in June, and will now apply to ‘new customers’ in the US, Canada and parts of Latin America.
Don’t worry if you are an existing user on the Netflix HD subscription as your price will stay the same. Netflix explains that the increase is required to to cover the cost of licensing shows and funding a growing number of original programs.
The extra revenue is also probably needed to support the new Walt Disney movies that will be arriving on the Netflix media streaming service next year. Bloomberg explains more :
Netflix has raised prices in a gradual manner ever since a disastrous 60 percent increase in 2011, when the company also tried to split its DVD-by-mail and streaming services. Netflix lost 800,000 U.S. subscribers in the quarter in which it instituted the split.
Source: Bloomberg Business
Filed Under: Entertainment News, Technology News