New subscribers will have to pay £7 per month. Current subscribers will not be affected just yet according to Netflix.
Netflix announced they are raising the monthly subscription price for the streaming service to £7 a month for new subscribers. Current subscribers will not be affected straight away but should expect to start paying the increased price within 1-2 years.
Speaking on the company’s Q1 earnings call, Netflix CEO Reed Hastings described the price hike’s effect on revenues, “to be quite modest in the short term” adding that existing customers will find the effects of the increase as “very generous”
The price increase is planned across the board for Netflix subscribers worldwide and reflects a rise varying between $1-2 depending on location. The current user base totals 48 million spread across 40 countries with non-US territories accounting for 25% of revenue. Plans are in motion for Netflix to expand into new European markets this year with Netflix eventually expecting international revenue streams to overtake those of the American market.
Netflix highlight that the increase in subscription fees will allow them to continue investing in their own original content which has in the past received considerable acclaim. The slick political drama House of Cards is set for a third series to arrive in February 2015 with the Netflix adaptation of Piper Kerman's account of life in a women’s prison, Orange is the New Black coming in June this year.
If you’re a Netflix subscriber does this news come as an annoyance or are you happy to cough up the extra provided Netflix continue to deliver the top series that they have become known for? Please use the comments below to have your say.