It’s official: new Netflix users will pay $1 more per month

Daniel Bader

May 9, 2014 11:11am

Coming as a shock to no one, Netflix’s ridiculously-low prices are going up. Specifically, they’re increasing by prices for new customers by $1 per month, from $7.99 to $8.99. The company will still offer a single-stream SD tier for $7.99/month.

Current Netflix users will continue at the regular $7.99/month price, which includes HD videos and two simultaneous streams, for two years.

While the company didn’t explicitly justify the price increase, the cause it widely believed to be in part due to the higher cost of bandwidth transmission. Netflix recently entered a deal with Comcast and Verizon, two of America’s largest ISP’s, for direct access to their pipes. Netflix’s CEO, Reed Hastings, wrote in a blog post in March, “Some major ISPs, like Cablevision, already practice strong net neutrality and for their broadband subscribers, the quality of Netflix and other streaming services is outstanding. But on other big ISPs, due to a lack of sufficient interconnectivity, Netflix performance has been constrained, subjecting consumers who pay a lot of money for high-speed Internet to high buffering rates, long wait times and poor video quality.” These fees ensure Netflix users get a good experience, regardless of price tier.

Netflix is currently available on nearly every mobile platform, as well as the web and many set-top boxes and connected TVs.

SourceNetflix

  • alphs22

    I don’t have a problem with this if it means more great original content like House of Cards.

    • peekabo

      THIS IS NONSENSE. REVOLT!!!!

    • hunkyleepickle

      If that were the reason for the increase, I agree. But as the article suggests, its more likely the rising cost of doing business with the isp’s, who are seeking to discriminate against high bandwidth sites like Netflix. Goodbye net neutrality.

    • peekabo

      this is not the last time you will hear of an increase. prepare for more cost increases from netflix over the years – crooks.
      Flixtor is free so use that people! screw netflix! canadian content is garbage anyway!

    • mdram

      So your solution is for people to steal the content they want to watch?

    • peekabo

      yes. welcome to 2014

    • crocop24

      Yes. Why pay for stuff in 2014?

    • HeyYoWL

      Because it’s illegal? Or how about we pose a hypothetical situation. Say you created something that a lot of people like. A movie, a book, whatever. You put a lot of work into it, you have a lot of fans, but strangely very little (if any) revenue. Because hey, it’s 2014, why pay for anything? How well would that sit with you?

    • crocop24

      LOLLLLL…keep paying for music..loser. Drake needs another bentley.

    • Zomby2D

      I hope your boss has the same line if thinking you do and when pay day comes by he can remind that it’d 2014 and you shouldn’t get paid for your work.

    • HeyYoWL

      Stupid people will be stupid.

    • Me Ted

      Don’t bother trying to reason with children.

    • PT

      Why bother? XBMC is 10x better and it’s all free.

  • Adam Young

    This is only for U.S Netflix customers, I heard it was not affecting the Canadian Netflix customers as of yet.

    • Delphus

      Just got the email 30 mins ago, it’s for Netflix Cananda as well

    • Super_Deluxe

      The increase effects every country. UK went from £5.99 to £6.99. So not just US but I do believe that Comcast and Verizon are the reason for the price hike. If more ISPs follow suit, it’ll continue to rise. Damn those greedy ISPs.

  • birdman_36

    $1 a month? Oh, the humanity!

    • HeyYoWL

      Seriously. Things go up in price over time. I saw someone complaining on RFD about not everything costing a dollar at the dollar store anymore. Some things cost *gasp* $2 now!

    • southerndinner

      RFD is awful. Stay away if you want to maintain hope in humanity.

    • HeyYoWL

      Nah most people are okay. Some people really make me shake my head though. The kind of people who hoard things just to turn a profit.. oi..

    • southerndinner

      Yeah that’s the point where it’s pathetic

  • iPwn8599

    I can live with that

  • Delphus

    Just saw this at the bottom of the price increase email (which won’t affect me for 2 years):

    – Price (excluding tax) guaranteed so long as you remain a member on your current plan.

    …there’s only one type of plan, so what does it mean really?!?

    Earlier in the email they state this:

    – As a thank you for being a member of Netflix already, we guarantee your plan and price (excluding tax) will not change for two years.

    So which is it, 2 years or as long as I remain on my plan (which is the only one available)…

    I work in Customer Base Marketing, this smells of too many eyes commenting the copy deck :-)

    • mdram

      There is more than 1 plan available. Check your account settings. Once the single stream SD plan takes affect, there will be 3 total. I’m on the 4 device plan myself.

    • Delphus

      Well would you look at that! Thanks mdram :-)

      Still not sure if it’s 2 years or as long as I have my plan though!

    • Salinger

      It’s a 2 year guarantee. The grey text at the bottom is essentially the fine print qualifying that the 2 year guarantee is in effect as long as you don’t change your plan.

  • Marc-André Therrien

    why pay for netflix when you can get everything free with flixtor :)

    • Zomby2D

      Because not everyone likes to steal the content they listen to?

  • alan1

    Here’s the email I received this morning (I’m a Canadian subscriber):

    “In order to continue adding more movies and TV shows, we are increasing our price from $7.99 to $8.99 for new members. As a thank you for being a member of Netflix already, we guarantee your plan and price (excluding tax) will not change for two years.”

    • Jesus McDongswoggle

      Same here. Nice of them to email. I have no need for cable so I’ll be a subscriber for the forseeable future.

  • Nexzen

    The amount of value they give at that price… no1 should be complaining.

    • peekabo

      bs – it should be $2.99

    • Nexzen

      I bet you don’t pay for music either.

    • crocop24

      Why would I? Its available online for free…why pay?

    • Nexzen

      Would you go to work if you weren’t getting paid?

    • Salinger

      Everything in a retail store is available for free too, you just have to be willing to steal it.

  • ReGenesis

    If this cost increase is indeed due to a handful of ISP’s, then I would say Netflix should fight back by creating a package that is a few dollars higher for customers on Comcast and Verizon – not setup a model where the non-Comcast and Verizon customers subsidize customers on those networks.

    If customers are unhappy about the increase, Netflix can direct those customers back to Comcast and Verizon to complain about their practices or perhaps change ISPs.

    It is only if the average customer is affected and fights back with their voting dollars that Net Neutrality will win.

    • Eid

      This is just an excuse. They wanted to increase the price anyways, and this is convenient justification. Same bs as gasoline. Price went up because crude oil is at all times high, because of high demand, because of this and that… In the mean time when crude is at all times low….. Or his years gas companies, I got hit with 80% hike, because it was cold and whatever. Sh#t they were paid for any gas spent, so what if people spent more this year. Past 2 winters before were extremely mild and I never saw my gas price go down.
      I bet if Comcast fee were to be dropped, Netflix wouldn’t roll back the pricing.
      I don’t mind the price increase, but let’s call spade a spade, no bs.

    • mdram

      It’s a valid point and you’re probably right, but since Netflix has never raised their rates before, there’s no historical data to compare it to. You’re just assuming they won’t drop rates because other companies don’t. There’s a difference between a monopoly utility provider and a media content provider with competition.

    • Eid

      In Canada Netflix has no competition. Althoughthey have not raised price before for basic plan, they have introduced tiers system, which historically is prelude to price hike, as they realise not enough people are jumping on higher tier bandwagon. And I do remember how the DVD part of Netflix service ended, so no companycan ever claim some high moral ground, as making money oon their corporate responsibility, and no companyraises prices because they have to, but bbecause they can. Pr game is just a Vaseline when you’re getting screwed.

  • Me Ted

    But I’m with Rogers so why am I being penalized for net neutrality issues in the US?

    • mdram

      Yeah..that’s the sad part of it but I bet you Rogers would try the same stuff if they could…

    • Me Ted

      For sure they would.

  • knize10

    Where did they come up with a 99 cents price ending ?????

  • Tommy Crosby

    Heh, I’m surprised how much this is gaining epic media coverage… It’s only a $1 upgrade since they started to make this service available. I’m pretty sure Cable TV had more raises in the same period of time.
    Heck, it’s still even $1 cheaper than what Videotron (Québec Cable) is asking for a worst service and selection.
    The two years price freeze is also something that some Teleco don’t even care about doing.

  • Wm.A

    With the massive amounts of original programing they are releasing . $1.00 isn’t a bad deal.

  • Werewood

    Old Canadian customers as well. just got my email.
    The price is still very low and I get a ton of value from Netflix.
    I am a happy customer.

    • flower_petals

      after 2 years