We caught ahold of this news from fellow DealsPlus member branie (thanks for the tip!).
Guess what? Your monthly Netflix subscription fee is about to get more expensive. For those who were grandfathered in at $7.99 per month for the standard plan, your grace period is coming to an end.
Beginning May 2016, everyone will be paying the same $9.99 monthly fee for the popular standard plan. You’ll be paying an extra $2 per month for the Standard plan which includes most of everything plus 2 streaming screens with the ultra HD only available for premium subscribers.
Despite the price rise, UBS analyst estimate that about 3-4% of affected subscribers would cancel their plan despite 41% claiming they would not accept the price increase.
A survey conducted by JP Morgan shows that 80% of the grandfathered subscribers has no idea their subscription fee is about to go up. Despite the low percentage of expected cancellation from UBS analyst, it would benefit Netflix to keep their subscribers in the loop (as a common courtesy hello). No one likes to see that kind of surprise on their monthly banking statement.
Even with the price increase, we suspect that most people will not be too upset given all of the amazing original content that Netflix has provided in recent years. Netflix has come a long way from when they first launched. They’ve managed to create addictive award-winning shows from Orange is the New Black and House of Cards to Master of None and Unbreakable Kimmy Schmidt and they have many more titles in production. Given their new projects, it makes sense to raise revenue via their subscriptions in order to generate funds for their upcoming projects. However, like we noted, it would be nice to receive a heads up.
Old subscribers will have to pay the $9.99 for standard fee on your next billing cycle in May
Netflix making this move in order to raise funds for their current and new Netflix Originals projects
Yep you read right! If you're not a current Netflix subscriber, get free access to all their streaming content for a month and see if its worth your money. With this access, you can get select any plan (yes, premium too!) to try free for a month so if you have a 4K or HDTV, definitely opt for premium.
Are you going to cancel your Netflix subscription?