Netflix Price Hike: Current Users Get Two-Year Rate Freeze

The monthly fee for its streaming service will rise by $1

   

Netflix Price Hike: Current Users Get Two-Year Rate Freeze

TV and movie streaming giant Netflix (NFLX) is raising its monthly subscription fees, but not all subscribers will feel the pain at once.

Netflix sign 630 300x227 Netflix Price Hike: Current Users Get Two Year Rate Freeze
Source: Flickr

In an email, Netlfix — which still rents DVDs under other subscription plans — announced that new subscribers who opt for the streaming service-only plan will pay $8.99 per month, up from $7.99. However, existing Netlfix subscribers won’t be hit with the Netflix price hike for two years, TechCrunch notes.

NetflixPromo Netflix Price Hike: Current Users Get Two Year Rate Freeze
A New Netflix Logo? It Looks That Way …

This isn’t the first Netflix price hike. In 2011, Netflix decided to separate its streaming and DVD-by-mail subscription plans. Customers who wanted to subscribe to both services saw a massive Netflix price hike when combining the plans, resulting in consumer blow-back and a PR debacle for Netflix.

Rumors of the coming Netflix price hike circulated last month.

NFLX stock climbed modestly in Friday morning trading on news of the Netflix price hike. NFLX stock closed a $321.66 a share on Thursday.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/netflix-price-hike-current-users-get-two-year-rate-freeze/.

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