Friday, April 8, 2016

Netflix price is going up in May for those grandfathered into the $7.99 plan

Netflix announced the price increase from $7.99 to $9.99 of its standard subscription way back in May of 2014. It was then that pitchforks were supposedly coming out of the shed for the protest on Netflix HQ. That didn’t happen, of course.

Part of that subscription fee increase decision was the move to let folks who already signed up for the $7.99 tier previously to be grandfathered into their price. That is, they would keep paying $7.99 while others spent $9.99. This increase was for the standard tier that allows for HD viewing on up to two screens at once.

In May of this year, those grandfathered users will lose their privilege and see the increase for themselves. If you’re stilling paying $7.99 for the standard tier of Netflix, that’s done next month. You’ll see a $2 price hike.

JP Morgan surveyed subscribers about the bump. The price hike will happen to 37% of the entire Netflix subscriber base, which amounts to roughly 17 million people. They estimate that 80% of the users that this will affect don’t even know the hike is coming. Estimates indicate that only 3-4% of subscribers will actually cancel.

I won’t be going anywhere. Netflix is offering some killer original content that I’m more than happy to pay $2 more for per month.

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