Netflix is Raising Prices in May, And People Are Not Happy

News & Trends

Victoria Cao

April 08, 2016 · 62.2k Views

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.

SEE ALSO: Amazon Prime vs. Hulu vs. Netflix: Which Service is Right for You?

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.

So here’s the breakdown on what’s happening:

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

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Are you going to cancel your Netflix subscription?

Victoria
Cao

I wanna be the very best like no one ever was. Couponing is my real test, to cut them is my cause. I will travel across the land, searching far and wide. Each store to understand, the discounts that's inside.

BarrelRacerApr 17, 2016

Knew that I was grandfathered in until a certain date and that once that date passed they could raise rates - and assumed they would - BUT didn't know they were doing it in May. They need to notify their subscribers or some people may not have the extra $2 if they budget down to the penny. No, I will not cancel, we only have regular TV (via antenna) and love Netflix.

heatherbrown71Apr 14, 2016

Cancelled Monday. That was the last straw.

hewitthouse1Apr 13, 2016

What are you changing or adding???

hewitthouse1Apr 13, 2016

Good Grief! New people get every deal while the faithful get charged more

Jayinla310Apr 12, 2016

I have been expecting for this. As long as they don't raise the DVD and streaming price or try to split the DVD portion again it is still a reasonable price. Although increasing the price on existing memberships for future projects isn't a good move.

realpaperApr 12, 2016

Still worth the money...

delsilsApr 11, 2016

Cancel it? and then what should we do?

luisdobleseis1dx26Apr 11, 2016

Si es gratis por que tienen que pagar algo si es gratis

aragoniaApr 10, 2016

Not sure what I will do. I like their original programming. I do wish they would get more first-rate movies for streaming. Then the increase might be justified.

timothy499Apr 10, 2016

cancel

brianwilliams2058Apr 10, 2016

Just started last month...let me say this...my philosophy on accessing netflix content is in general I am willing to pay 10$ a month for the large variety of content because I should be....that is I am one of the so called data hogs that downloads anything I want and this is a bit of compensation that I believe we all should do...if you've been paying over the years a contract with like Cox and now just realize how bad a decision that was...the time is right now to cut the cord ..get netflix Or Hulu and buckle down.