The cost of binge watching Narcos, Daredevil and more just went up by $1 per month. Netflix has announced that it is raising streaming subscription prices for its most popular plan up to $9.99 per month for new subscribers. Current subscribers will be given a grace period to adjust but they’ll eventually see their prices increase as well.
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What does this mean for Netflix’s bottom line? Analyst Neal Cybart writes that increasing streaming prices by $1 will generate an extra $750 million in revenue per year. Netflix right now has an estimated 65 million subscribers worldwide and is still in the middle of an ambitious expansion.
The service has been very aggressive over the past year in producing quality original content, with hit shows including political drama House of Cards, prison dramedy Orange is the New Black, action-drama Daredevil and comedies like The Unbreakable Kimmy Schmidt. Netflix’s exclusive content has been so good that it serves as a draw for new subscribers in and of itself.
In case you’re curious about your options now, here is Netflix’s new pricing grid:
We should note that the premium pricing remains unchanged at $11.99 per month, so if you’re a subscriber who pays extra every month to have Netflix content available on four screens, you have nothing to worry about.