Netflix Will Hike Subscription Rate for New Customers

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

8 Tuition-Free U.S. CollegesCollege

These Are the 25 Best Jobs in the U.S.Jobs & Work

9 Secret Ways to Use Toothpaste That Will Make You SmileAround The House

The 2 Types of Music That Most Improve Dog BehaviorFamily

The company plans to raise its prices for its popular streaming service by as much as $2 per month.

As expected, Netflix is getting more expensive, but only by a dollar or two, and only for new customers – at least for now.

The Internet video powerhouse on Monday announced its plan to increase subscription rates for new subscribers sometime in the next few months. The company says existing customers will continue to pay $7.99 per month for streaming “for at least the next year,” The Associated Press reports.

“If we want to continue to expand, to do more great original content … we have to eventually increase prices a little bit,” Netflix CEO Reed Hastings said in a conference call with analysts Monday.

Also on Monday, Netflix reported earnings ahead of expectations and a growth of 4 million subscribers. The new subscriber price hike could mean big bucks for the streaming service. According to Forbes:

With the company set to surpass 50 million streaming subscribers by the second half of 2014, the price increase could add between $600 million and $1.2 billion to the company’s revenues within the next two years. And if all goes according to plan, Netflix can potentially experience the opposite effect it did when it last tried to raise prices in 2011.

Netflix tried to separate subscriptions for DVD rentals and streaming services in 2011, and billed separately for them. It proved to be a disaster, with canceled subscriptions and a drop in stock.

The mailed-DVD side of the business is shrinking. AP says:

Through March, Netflix had 6.7 million DVD customers, a 52 percent drop from 13.9 million just two years ago. Netflix isn’t changing its DVD prices, despite rising postal costs.

Are you a current Netflix subscriber? Will you pony up an additional $1 to $2 per month when the grace period for existing Netflix customers is over? Share your comments below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 10 Best Places to Retire in 2017

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,872 more deals!