Netflix to increase prices

Netflix Inc. increased prices by one euro ($1.10) a month for new subscribers in most of its European markets to raise funds to add more TV shows and movies. Netflix needs more money to provide more content to Europe.

In the mail dispatched to users of the online streaming service, Netflix stated that the price hike was important to ensure the company will “continue providing good series and films”.

It has e-mailed members to notify them of the change. The increase applies to most of Netflix’s European territories, although there is some variation in the pricing scheme.

Over the years, Netflix has started to make quite footprint in Europe. This is nearly three times the projections released by the French Ministry of Culture. Non-HD subscribers and premium subscribers prices were unchanged, according to the report. Apparently, the increase will only affect standard subscribers, also.

The Netflix fee hike is unlikely to create huge churn, however.

Current Netflix subscribers (or “members” as the company calls them) remain unaffected, with the current price guaranteed till May 2016.

Charges for the standard-definition 1Stream service and the 4Streams HD service are not changing from €7.99 and €11.99 respectively. In addition to heading to Japan next month, Netflix will be rolling out streaming services in Italy, Portugal, and Spain later this year.