Netflix raising its prices for grandfathered customers to $9.99 a month

[JordanWearinThe45]

Netflix will raise prices on about17 million of its standard accounts starting next month, and most people have no idea, according to Wall Street analysts.

In May 2014, Netflix began to raise the price of its standard streaming plan for new subscribers, first to $8.99 a month, then to $9.99 a month last October. Existing subscribers, however, were grandfathered in at $7.99 a month for the two-stream, "HD" quality plan.

But those days will soon be over.

Next month, these grandfathered customers will begin to be moved up to $9.99 for the standard plan. Analysts at UBS have estimated that this change will end up affecting about 37% of US subscribers, or 17 million people.

And most of those 17 million subscribers aren't aware of the coming changes. In a recent JPMorgan survey, about 80% of those who could be "un-grandfathered" in May didn't know the price hike was coming.

How will these subscribers react?

UBS estimates that roughly 3% to 4% of affected subscribers will cancel, though many more say they will (about 15% of those surveyed by JPMorgan).

Despite the price increase, Netflix still has a lead in "price per hour of entertainment" over pay TV. Netflix costs $0.09 per hour of viewing, while a typical pay-TV package costs $0.30 an hour, according to UBS.

80% of people who will have their Netflix prices raised next month don't even know it's coming

Here is Netflix's current pricing structure:

I was one of the grandfathered. I know its only $2, but RIGHT NOW its $2, they gonna keep raising it.

 

[Dominic Brehetto]

It's $15 here in Canada for the highest plan. Give a couple friends the password split the cost. Ain't shyt

 

[newarkhiphop]

Meh, with taxes Netflix is $8.57

I'll pay a extat $1.43 for the GOAT streaming service

 

[teacher]

They should include 4K with the price increase

 

[Deltron]

surprised they waited this long. I remember when they initially announced they were going to raise the price for new customers like 3 or 4 years ago they said grandfathered people would have the lower price point for the time being.

 

[winb83]

I pay for Netflix, Hulu, and Amazon Prime for my parents to have all the mainstream streaming services. They use the hell out of them, I really don't but I'll just pay. I mean hell I still have Netflix DVD service on my account and I haven't swapped DVDs out in like 2 years. I need to actually find the last DVD I got from them and mail it back...

 

[the cac mamba]

id pay twenty