Thu, Apr 04, 2019

Netflix's Price Hike for Existing Customers Will Come in May

In an effort to fund more original content.

@Forbes

Early this year, streaming giant Netflix announced that new subscribers and existing customers will both see a price hike for their plans. While the new rates took effect immediately after the announcement for new joiners, Netflix has now announced that existing subscribers will also be seeing a slight bump in price starting in May.

The smallest price change will be for the Basic plan, which will go up $1 USD per month from $7.99 USD to $8.99 USD. The Standard and Premium plans will both see a price change of $2 USD, moving up to $12.99 USD and $15.99 USD respectively. According to the streaming service, the price hikes are due to its effort in increasing the amount of quality original content for audiences. A Quartz study found that in 2018 alone, Netflix produced and added to its inventory nearly 90,000 minutes of original content — that’s almost 1,500 hours of fresh original content for customers to enjoy.

While some users of the service are understandably frustrated at the price increase, a survey last year by the Wall Street Journal actually revealed that more than 70% of Netflix subscribers felt that their experience has improved since first joining. It seems like the overall sentiment might warrant the price jump after all, at least from Netflix’s perspective.