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Look Forward to a Price Hike, Netflix Newbies

Depending on what country you live in, Netflix is planning a rate hike of $1 to $2, according to the movie rental service in a letter to shareholders.

Without providing specifics, Netflix says that the change would affect new customers sometime this quarter, upping the price of their unlimited streaming service to anywhere between $9 and $10. For comparison, Hulu is $8 a month in the U.S. while Amazon Prime is $75 a year, which breaks down to $6.25, although they’ve announced a price increase for 2014 as well.

This comes as Netflix is throwing more and more of its weight (and money) into original programming (where else are you going to watch the second season of Orange is the New Black? Huh?), while they’re looking down the barrel of Internet service provider mergers which could see them potentially having to fork out more money for access to the healthy amount of bandwidth online streaming eats up.

What about current Netflix subscribers? The letter hints at an increase somewhere on the horizon, but that current prices will remain the same for “a generous time period.” My guess: once Amazon’s new rate for Prime starts rolling out, we can expect Netflix to quietly follow suit.

HT: CNBC

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