Nobody likes it when prices are raised, be it gas prices or that of your favorite beverage, it always draws criticism from customers but often there are legitimate reasons for such a hike. Whether or not you believe that to be the case is entirely up to you, but if you subscribe to Netflix you won’t be happy about the fact that it’s going to get a bit more expensive starting next month.
Netflix’s previous price hike came last year when it increased prices for new customers subscribing to the standard plan from $7.99 to $8.99. The upcoming price increase applies to all existing customers and they will now have to pay $9.99 per month for the standard plan starting May.
This is the first time that Netflix is increasing prices for its existing users after it confirmed in May 2014 that those users will be kept on the original price plan for two years. It will be two full years next month which means that it’s now time for a price increase.
Netflix estimates that this price hike is going to hit approximately 17 million subscribers in the United States while users in the United Kingdom are going to see an increase of 50p later this month.
The online streaming giant uses the bulk of its proceeds towards funding original content which includes TV shows and movies, it then counts on the original content to bring in more subscribers, the money is also used for securing streaming rights for content that it constantly needs to add to its library.