Netflix will be increasing their monthly subscription prices in the United States and the U.K. beginning in May.
The Associated Press reports new customers will be charged $9 a month, but exisiting customers will continue to pay $8 until May 2016. The price increase is reportedly due to the company's desire to provide more original programming on the heels of the successful "Orange Is The New Black" and "House of Cards." Netflix currently has 36 million subscribers in the United States.
"We previously announced that we planned to increase our price slightly for new members. That increase is happening today," Netflix spokesman Joris Evers told the Washington Post. "Existing Netflix members get to keep their current (US$7.99) price for two years, enjoying HD-quality movies and TV shows on any two screens at the same time."
The price hike delay for existing customers will is Netlfix's attempt to avoid backlash, AP reports. In 2011, customers were outraged when they increased the prices by 60 percent. The streaming service lost 800,000 customers and their stoke plummeted by 80 percent.
According to The Guardian, customers can avoid the price hike by opting to change their account to lower-resolution "SD" quality service. However, it also means multiple users cannot access the Netflix account.
"The decision to raise prices comes amid the commercial and critical success of House of Cards, where Netflix invested €100m in the drama starring Kevin Spacey and made the entire series available for immediate streaming," The Guardian reports. "It has also enjoyed a ratings hit with Orange is the New Black and plans further original content from documentaries to children's programmes. But it makes Netflix £1 a month pricier than Amazon Instant Video (the new name for Lovefilm) which charges £5.99 a month."
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