Price Hike Alert: Netflix jumps to $10-per-month for everyone in May

In case you are one of the 17 million Netflix accounts that has been grandfathered in at the $8-per-month price for the last two years, the streaming video company will be raising your rate next month to $10-per-month. Back in May 2014, Netflix announced the $10-per-month plan for all new subscribers, but allowed their existing customers to keep the $8-per-month price for two additional years.

It’s likely that the majority of Netflix’s grandfathered users have simply forgotten about the price hike. A recent JP Morgan study found that roughly 80 percent of those users were unaware that the price of Netflix would be rising.

Of course, this will result is a large revenue spike for Netflix. Even if 20 percent of those 17 million customers cancelled due to the price hike, Netflix stands to bring in an additional $325 million each year, assuming all remaining subscribers stick with the service.

Even with the price hike, Netflix is still a bargain to the end consumer. Netflix costs roughly 9 cents per hour of entertainment as opposed to traditional premium television services which clock in around 30 cents per hour of television.

Comparatively, Hulu is still priced at $8-per-month ($12-per-month if you don’t want commercials) and Amazon Instant Video on Prime averages about $8.25-per-month at Prime’s $99-per-year fee (and that doesn’t even factor in all other Prime perks).

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One Comment

1. 

   Doug Dingle

   April 8, 2016 at 12:20 pm

   Amazon Instant Video on Prime is not very good in terms of available ‘free’ video content. Seems that every time I want to catch some old show on it, it’s only available for sale/rent.

   Same shows on Netflix are part of the monthly fee.

   Prime is fine for the free shipping, the occasional ‘Prime-only’ sales, and some of the original series, but don’t expect decent shows or movies to be included in the price – they are not.

   Reply