Starting in May, you're going to have to shell out just a little more to be able to watch your favorite movies and television series on Netflix. Yes, you read correctly. Next month, subscribers who grandfathered into an $8 per month two-stream HD plan will start paying $10 per month like everyone else.
As stated, this only impacts those with grandfathered payment plans, so those who recently hopped onboard the Netflix bandwagon won't be affected by these changes.
However, 17 million Netflix customers will be affected. According to a survey conducted by JP Morgan, about 80 percent of respondents had no idea that they would be "un-grandfathered" in May. If you fall into this category, then it isn't too surprising as this change was the result of price hikes that were two years in the making.
The price of Netflix's standard streaming plan for new subscribers first began to rise in May 2014 when it was first increased to $8.99 per month, and then again in October 2015 when it was increased to $9.99 per month. All that time, however, existing subscribers were grandfathered in at $7.99 a month for the two-stream, HD quality plan.
This price plan isn't too big of a deal, but customers should know that price hikes are coming before they show up on your bill unexpectedly. In fact, UBS estimates that only 3 to 4 percent of affected customers will cancel their service. Why? Because Netflix is just that good.
Here's the rundown of what you need to know:
- Netflix users can check their billing page, which should indicate under the "Plan Details" category when the price increase will take effect. "Your plan price is guaranteed through at least May 9, 2016," for example.
- Subscribers will receive notification both by email and with the service so that "they have time to decide which plan/price point works best for them."
- Customers in Britain are on a different timeline and will begin to be "ungrandfathered" later this month.
- Another price hike is coming in October. No one will be grandfathered this time around either.
Even with a price hike, Netflix is still a great bargain. What remains to be seen is what Netflix will do with the boosted revenue garnered from these price hikes. Will Netflix bolster its lineup, or does it have something else in store? In the meantime, most users are clearly more than happy to pay an extra $2 to watch their favorite Netflix offerings.
