Netflix to increase price for new subscribers

Echoing an email sent to new U.S. subscribers in 2014, when it announced a U.S. price hike from $7.99 to $8.99, a Netflix source justified the price rise to Variety “to continue adding more TV shows and movies, including many Netflix original titles”. The company has made a similar price hike in the United Kingdom as well and on some of its offerings in the Nordic countries earlier in the year. The previous price of the high-definition plan was €8.99 a month.

Netflix says existing customers will not have to pay more – with prices staying at current rates until at least May 2016. Netflix did not increase the price for non-HD members and premium members at €7.99 and €11.99 per month, respectively.

The increase will affect most European countries where Netflix operates, including Germany, France and the Netherlands. This is almost three times the projections released by the French Ministry of Culture.

Netflix has 650,000 members in Germany.

Netflix Inc. (NASDAQ:NFLX) has discreetly boosted its subscription fees across all of Europe wherever it is operational.

So, what’s the reason for the change and increase in prices?

Analysts doubt, however, that the price bump will cause any significant exodus of clients from Netflix’s burgeoning – and already significant – Euro business.

Netflix’s international subscriber numbers stand at 23 million, in comparison to 42 million from the domestic front as per its financial report for the recent quarter. In Switzerland, the price of Netflix subscriptions will climb to $15.26.