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Netflix to Raise Price for New Members, Existing Members Stay at $7.99

| 9 May 2014 15:10
Netflix

New members can expect to pay an extra back -- $8.99 instead of $7.99.

The Netflixpocalypse has finally begun!

Not really, though. Slowly but surely, Netflix is emailing all of its subscribers, cluing them into an impending price hike.

I've yet to get the email, but Fearless Leader Greg Tito found this email, titled "Important Membership Information," in his inbox this morning (emphasis added):

Hi Greg,

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 that your plan and price will not change for two years.

You can review your membership details at any time by visiting Your Account. As always, if you have questions, we are happy to answer them. Please call us at any time at 1-888-357-1516.

-The Netflix Team

So if you're already a Netflix subscriber, your $7.99 price will not change for two years. New members -- and we've yet to find out what the new member/old member cut-off date is -- will be paying the extra buck.

All things considered, it's a great strategy for Netflix. You're not angering your established user base while raising prices. And new people signing up? Well, you've had {looks at watch] literally years to sign up for the $7.99 price. Sometimes life isn't fair, I suppose. I'm curious if the new member cut-off is today, or if it's a date earlier this week. Does John Doe, who signed up May 6th, get the $7.99 price? Or is he new enough for $8.99? I'm sure the Internet Hate Machine will let me know in due time.

Hopefully this extra cash gets split between securing distribution rights, as well as fueling more original content. Carry on, Netflix.

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