Netflix’s Price Increase: Gambling on Subscribers

“To continue adding more TV shows and movies including many Netflix original titles, we are modestly raising the price for a few new members in the USA, Canada and Latin America”, Netflix spokeswoman Anne Marie Squeo said.

Netflix, you’ve bested us again.

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For now, the price hike will affect only new customers in the USA, Canada and parts of Latin America. Customers who signed up since the last price increase will pay $9 per month until October 2016.

The price increase is expected to start in a year, CNN reports.

The news reversed an intraday skid in the stock price, which is now up more than 2% from yesterday’s close.

Netflix adjusted its pricing in Europe in a similar way over the summer.

Netflix is getting more expensive. The research firm Ampere Analysis predicts Netflix will be paying $6 billion annually for its line-up by 2018. But it does show that price continues to be a sensitive subject for Netflix.

The company had 65 million customers globally in July. Netflix now features dozens of exclusive programs.

An extra buck a month will likely not dissuade diehard Netflix lovers.

The company last raised the price of the “standard” plan for new members in May a year ago.

The standard plan allows for streaming on two screens at the same time, and HD video. The premium plan will also stay at its $11.99 a month price.