Last year when the streaming video giant NetFlix raised the cost of their subscription service to new subscribers, the company left the rates as they were for those already using a plan, adding they would eventually raise rates for those customers at some point in time.
Well, according to decider.com, that time is now, at least, next month for all those who were “grandfathered” in with the old rates. NetFlix plans to raise the rates for its Standard option, which allows for two screens to be watched simultaneously, to $9.99 per month for all subscribers. That option is the most popular among subscribers. Some long time customers were paying either $7.99 or $8.99 per month for the Standard plan, meaning the service will cost you either $24 or $12 a month more, depending on which rate you had been paying.
So, beginning in May, everyone will be paying at least $9.99 per month to binge watch your favorite old tv shows or the new season of House of Cards. The increase will affect about 37 percent of the companies customers, around 17 million subscribers, and will net the service about an extra $34 million each month, according to calculations done by UPROXX.
The company has not announced their plans to raise the rates, and one survey found a large number of people are unaware their rates will rise on next month’s bill. The company did say when they said new members would be paying a higher rate than its older customers in 2014, that eventually all would be paying the same.
Experts are predicting that some of the subscribers to the service, an estimated three to four percent, will decide to cancel the service after receiving news of the rate hikes, but it appears the vast majority of the company’s members will just complain about it and continue to enjoy the programming.
And it may not be all bad news. One would imagine the bulk of the additional $34 million per month will be invested in more new and original programming, since the company has been moving in that direction already.
Plus, they already have us hooked on some series we won’t be able to live without when the new seasons of our favorites are released. It’s not like the cost of anything else we pay for isn’t rising.