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Netflix Plans Price Hike for New Subscribers

Netflix Plans Price Hike for New Subscribers

Given that just about everyone we know subscribes to Netflix, the streaming site can probably get away with charging more for their goods. A couple months ago Amazon Prime announced its annual fee would jump by $20 beginning in 2015. Now Netflix intends to raise its subscription price for new customers by $1 or $2 per month.

Clearly Netflix is putting a lot of bank into its original content — like pricey “House of Cards,” and “Orange Is the New Black” — and, per the Wall Street Journal, the subscription raise would go towards not only that continued output, but higher quality content. And their popular $7.99 per month streaming plan hasn’t taken a price jump since 2011; similarly, Amazon’s Prime hasn’t increased in several years either.

Even after the price bump goes into effect, current subscribers would reportedly stay at the $7.99 price point for “a generous time period.”

At this point Netflix has about 48 million global customers, having added about 4 million new subscribers in the first quarter of 2014. 

Meanwhile, even though the company has made a deal to pay Comcast to gain access to a more direct internet connection, now Netflix chief Reed Hastings has made clear his strong opposition to the cable operator’s $45 million merger bid to take over Time Warner Cable, saying that it would give them “anti-competitive leverage.”

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