Those of you that subscribed to Netflix before May of 2014 have enjoyed a grandfathered subscription price of $7.99 per month. Sadly, the low-cost good times are coming to an end. Starting next month, those same subscribers will see a price increase to $9.99 per month to put them on even footing with the new subscribers who have been paying that rate since last year.
As of now, an estimated 37 percent of Netflix customers - roughly 17 million users - are paying the grandfathered rate. In May, that same group of millions of subscribers will start paying more for the streaming service.
However, the price increase is being implemented to pay for more original content, which is good news for Netflix subscribers. The company has put into motion an ambitious plan to deliver significantly more original TV series and films in recent years and most users couldn't imagine the entertainment landscape these days without "House of Cards," "Orange is the New Black," "Daredevil," or "Unbreakable Kimmy Schmidt." Yes, it's a bummer that you have to pay more, but at least that money is being reinvested into the product.
Movies stars such as Idris Elba ("Beasts of No Nation"), Adam Sandler ("The Ridiculous 6") and Brad Pitt ("War Machine") all have movie deals with Netflix while the streaming service has a goal to double its number of original shows in 2016. You can't say you're not getting more bang for your buck.
Still, Netflix could do a better job of notifying its customers of the spike in price. A recent poll conducted by JP Morgan revealed that 80 percent of affected Netflix subscribers are unaware of the upcoming price increase. If Netflix wants to avoid a large and sudden public backlash, they may want to start getting the word out.
But the streaming service still deserves credit where credit is due. The $9.99 monthly price is still less expensive than the commercial-free version of Hulu, though it does now cost more than Amazon Instant, which sits around $8.25 per month as a part of the Amazon Prime package.
What do you think, Netflix users? Angry about the price increase or are you more excited for the onslaught of original content coming your way? Let us know in the comments section below.
Follow Brandon Katz at @Great_Katzby
