Netflix is about to jack up prices for millions of customers as its price freeze finally comes to an end.
Customers who have subscribed to Netflix for two or more years will see their monthly bill increase starting this month.
Two years ago, Netflix increased its subscription price for new customers, but froze the price for existing subscribers, promising two years of static costs.
But that two-year window has finally come to an end, which means long-time subscribers will now have to pay the same as new customers.
In the UK, the rate is going to increase from the ‘grandfathered’ £6.99 per month to £7.49 (£89.88 per year).
In the US, the monthly charge is rising from $7.99 to $9.99 ($119.88 per year), bringing old customers in line with newer subscribers.
It’s worth noting that this price hike only affects customers of Netflix’s middle-tier plan i.e. high-definition. If you’re not happy with the rise, you can downgrade to the cheaper standard definition plan.
In a note to shareholders in January, Netflix CEO Reed Hastings said:
“Given these members have been with us at least two years, we expect only slightly elevated churn.”
However, despite the early warning of the hike, a survey by JP Morgan suggests that 80% of customers aren’t even aware that the prices are about to change.
Related: Netflix vs Amazon Video
Netflix launched in 1998 as a DVD-by-mail service, but didn’t start streaming until 2007.
The service now has over 75 million paying subscribers worldwide, and now serves 190 countries globally.
What are your thoughts on the price increase? Let us know in the comments.