Netflix is raising the price of its “Standard” plan subscription by $1, making the total $9.99 per month for new customers in the U.S., Canada and parts of Latin America. This price increase will not be applicable for existing customers until after a grace period of varying lengths. Prices for the “Basic” plan and “Premium” plan subscriptions will not be changed.
The company has more than 65 million subscribers worldwide and it is banking on gaining more customers and increasing prices to sustain its revenue growth and to finance the increasingly growing costs of its film and TV offerings. Netflix has had a history of raising its prices on its customers, the first time being in 2011 and most recently in 2014. By charging existing customers their lower rate for a year or two, Netflix has softened the blow for this price increase.
Netflix’s price increase was first reported by Bloomberg.