Netflix announced a price increase for US subscribers back in May 2014 but gave all existing subscribers a grace period of two years. That grace period ends next month where an estimated 17 million subscribers will be moved up from $7.99 to $9.99. Price hike for Europe coming in August.
Netflix price hike
That is a 25% increase in price if you are counting but Netflix is still cheaper than most of its competitors. Hulu charges $12, Showtime charges $11, and HBO charges $15 per month.
Netflix announced the price increase for its standard plan in May 2014 and followed up with another price increase in October 2015. Customers who signed up before May 2014 were been given a grace period of two years that ends in May 2016 - or next month. It is estimated that about 17 million people in the US will be hit by the price increase.
Customers in the US who signed to Netflix after the announced May 2014 price increase will be moved to $9.99 this October.
Netflix also increased the price from 8.99 to 9.99 Euro in Europe in August 2015. Existing customers were given a one year grace period, which means that many European customers will be hit by the price hike later this summer. Customers in the UK will be bumped up 50 pence to Ł7.49 next month.
The company said that it had to increase the price “to continue adding more TV shows and movies, including many Netflix original titles”. With 17 million US subscribers in May, several million European subscribers in August, the UK next month, and the remaining millions of US subscribers in October, Netflix should receive a decent amount of money to fund new TV series and movies.