Netflix Raising Monthly Subscription Fee $18 Oct, 2015 By: Erik Gruenwedel
Basic plan for new subscribers in the U.S., Latin America and Canada will cost $9.99
Netflix Oct. 8 quietly revealed it will increase the monthly fee for its standard HD subscription service $1 to $9.99 for all new subscribers in the United States, Canada and Latin America, effective Nov. 8.
The new fee is less than what HBO Now ($14.99) and Showtime ($10.99) charge for their OTT video services. Hulu Plus charges $7.99 for streaming with ads, $11.99 for ad-free streaming.
The Netflix price hike, which was disclosed on its “get started” link on the website, follows a 1 euro price hike in Europe last year. Netflix last raised domestic pricing in 2011, a move that proved disastrous.
The subscription streaming pioneer saw a massive subscriber exodus and freefalling stock valuation after raising the price on a popular streaming/by-mail hybrid plan 60%. Netflix compounded the problem when it said it would also spin off the disc rental business under a hastily assembled Qwikster brand name. That idea was scuttled after three weeks.
Regardless, Netflix shares lost about 75% of their value, with some analysts calling on co-founder/CEO Reed Hastings to resign. Fast-forward to the present, and Netflix shares are up slightly, erasing earlier declines.
Netflix reports third-quarter financial results Oct. 14.