Netflix’s price hike to $10 per month will hit 17 million subscribers in May

netflix adds picture in ipad sign
In October of last year, Netflix announced its latest price increase, raising the price for its standard HD streaming plan from $9 to $10. But for many users, next month is when that number hits home.

While Netflix has had two price increases in recent years — the October 2015 increase followed an increase in May of 2014 from $8 to $9 — until now, existing subscribers have been grandfathered in with the lowest price. However, those chickens will come home to roost in May, when even longtime users will see their bills go up.

Business Insider reports that 17 million standard account subscribers will be subject to a $10 monthly fee starting next month — a $2, or 25 percent increase. This amounts to about 37 percent of U.S. subscribers, most of which aren’t even aware of the impending changes. A JPMorgan survey showed that 80 percent of “un-grandfathered” subscribers won’t know what hit them.

Analysts at investment firm UBS estimate that 3-4 percent of subscribers will cancel following the price hike, while yet another JPMorgan survey places the numbers higher at 15 percent.

New subscribers to Netflix get a month free, after which they can choose a plan. The Basic plan costs $8 and can be viewed on one screen at a time and has no HD video support. The Standard plan adds $2 and gives you HD capability for two simultaneous devices. Finally, the Premium package offers Ultra HD support and can be viewed on up to four screens at once.

Related Offer: Stream any television show or movie with Amazon Fire TV

Even with the increase, Netflix’s Standard plan is still less expensive than Hulu’s current commercial-free plan, which comes in at $12 per month. Showtime’s Over-The-Top streaming service costs $11, while HBO Now will set you back $15 per month.

While users will no doubt be less than thrilled about the latest increase, Netflix’s “price per hour of entertainment” is also priced far less than what you’d spend on pay TV. At the current rate, Netflix costs an average of around $.09 per hour of viewing, while a standard TV package costs $.30 per hour, according to UBS.

Moreover, investors seem to like it when Netflix jacks up the price. Since the streaming giant spends billions on content each year, for both licensed and original content, the company is just barely profitable right now. A 25 percent price bump is a huge increase in the grand scheme of things for Netflix’s monthly revenue tally, yet most users won’t notice a couple of dollars on a monthly statement.

Still, the company has to be careful about making sweeping changes. The streaming market has never been more competitive, with rivals Amazon and Hulu gunning for Netflix with each new acquisition and original series. It will be interesting to see how things pan out after this latest price increase. But — with over 75 million subscribers worldwide — Netflix doesn’t appear to be too concerned about losing a few stragglers in the aftermath.


Netflix’s latest price increase heralds the end of streaming’s golden age

Netflix’s recent price rise is just the latest in a string of signs that streaming’s golden age is nearly over. As more services enter the fray, content will be further partitioned, signaling the end of streaming’s good old days.
Home Theater

Cutting the cord? Let us help you find the best service for live TV streaming

There's a long list of live TV streaming services available to help you cut the cord and replace your traditional TV subscription. Each is different in important ways, and this guide will help you find the best one for you.
Home Theater

Sling TV offers free shows, a la carte subscription channels to Roku users

If you are among a select group of Roku users, Sling TV has added free TV shows and the option to subscribe to individual channels without having to subscribe to the company's base level of channels.
Movies & TV

How much does Netflix cost? Here’s a pricing breakdown of its plans

Wondering how much a Netflix subscription costs? You're not the only one. That's why we put together a quick-hit guide covering all the Netflix plans, whether you want to opt for 4K streaming or a disc-based option.

Break out the Wii: ‘Just Dance’ movie reportedly in the works

Sony's Screen Gems has reportedly acquired the film rights to the Just Dance video game series from Ubisoft, which previously helped bring the game Assassin's Creed to the big screen in 2016.
Movies & TV

Apple’s first original feature film reunites Bill Murray, Sofia Coppola

The Lost in Translation team of Sofia Coppola and Bill Murray will reunite with their A Very Murray Christmas collaborator Rashida Jones for On the Rocks, Apple and studio A24's first official feature together.
Movies & TV

You can get a screaming deal on LG OLED TVs just in time for the Super Bowl

LG is offering steep discounts on its critically acclaimed OLED TV models just in time for the Super Bowl, letting discerning viewers watch their favorite athletes with higher picture quality than ever.
Movies & TV

Jason Reitman’s ‘Ghostbusters’ sequel already has a creepy teaser trailer

Jason Reitman, son of Ghostbusters director Ivan Reitman, has secretly co-written a follow-up to the 1984 supernatural comedy. Filming begins this summer, but it's not clear if the original Ghostbusters will reprise their roles.
Movies & TV

From premiere date to footage: Here's all we have on 'Game of Thrones' season 8

With the eighth and final season looming, Game of Thrones fever has officially become a pandemic. Our list of all the relevant news and rumors will help make the wait more bearable, if you don't mind spoilers.
Movies & TV

Netflix recruits Steve Carell for the Trump-inspired comedy ‘Space Force’

Steve Carell, Netflix, and The Office showrunner Greg Daniels are teaming up for Space Force, a workplace comedy poking fun at the Trump White House's plans to establish a sixth branch of the U.S. military.
Movies & TV

New trailer for 'The Punisher' season 2 teases a bloody showdown

The Punisher is getting a second season on Netflix, with Jon Bernthal returning to play Marvel Comics' gun-toting antihero Frank Castle. Here's everything we know about season 2 of The Punisher so far.
Movies & TV

The ‘John Wick: Chapter 3 – Parabellum’ trailer has finally arrived

Lionsgate has released the first, full-length trailer for John Wick: Chapter 3 - Parabellum, the third installment of the action franchise that casts Keanu Reeves as the world's greatest assassin.
Movies & TV

Here's everything we know about 'John Wick: Chapter 3 -- Parabellum'

John Wick: Chapter 3 -- Parabellum, the third installment of the wildly successful action series that stars Keanu Reeves as a deadly assassin forced out of retirement, hits theaters in May 2019. Here's everything we know about it so far.
Home Theater

What’s new on Amazon Prime Video (February 2019)

Amazon Prime Video adds new titles each month that are available for free to all Prime members. Check out our list to find all the content hitting Amazon Prime Video in January and February, from new original series to classic films.