Not a Netflix subscriber yet? Starting today, your procrastination will cost you an extra buck.
Bloomberg reported yesterday that Netflix is instituting a $1/month price increase for new users in the US, Canada, and portions of Latin America — similar to what was already introduced in Europe.
While existing customers will get a grace period, which varies in length from seven months to nearly a year, depending on if you were a member when the last price increase went into effect. I, for example, still pay $7.99/month for the company’s “standard” plan (2 users + HD), despite this price itself increasing last year. Users who already pay $8.99 for the 2 user plan won’t see the new $9.99 pricing until next Fall.
Though the company has over 65 million subscribers worldwide, the cost of Netflix’s original content (including newly-released Narcos) continues to grow: Bloomberg reports that the company has over $4 billion in programming costs slated for the next year, with almost $5 billion more in the next 3. Ending deals with distributors such as Epix, which concluded in September, means Netflix will continue to need to produce original content to stay ahead of competitors like Amazon Prime and Hulu.
Though the new Netflix price increase will impact new subscribers and those with the 2 screen plan, there is no indication the service will raise prices for its premium or single-screen options. If you are an existing Netflix customer and want to see when your price increase will go into effect, log into Netflix and go to Your Account for details.