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Netflix is being sued for raising its prices

June 30th, 2016 at 5:01 PM
Netflix Price Increase

I think most TV and movie lovers would agree that one would be hard pressed to find a service that provides more bang for the buck than Netflix. In addition to a growing stable of quality original programming, Netflix also has a wide selection of movie and TV content. And even though Netflix’s content library is 40% smaller today than it was four years ago, the quality of content available is arguably unmatched anywhere else.

But rolling out an endless string of original content and securing licensing deals with Hollywood studios isn’t cheap, a business reality that has naturally forced Netflix to raise its prices over the past few years, even for longtime subscribers.

And so, not surprisingly, Netflix now finds itself on the receiving end of a lawsuit.

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Remember when we told you recently that you’re about to start paying more for Netflix?

The Hollywood Reporter reports that a Netflix subscriber who was led to believe that he was grandfathered in under Netflix’s $7.99/month rate recently filed a class action suit against the streaming giant for increasing his monthly rate to $9.99.

“For a period of time, Netflix solicited persons to subscribe to Netflix’s streaming service by guaranteeing that Netflix would not increase monthly subscription prices as long as the subscribers maintained the subscription service continuously,” the complaint reads in part. “Netflix has broken its contract with these subscribers by unilaterally raising monthly subscription prices.”

Consequently, the subscriber in question — one George Keritsis — is suing Netflix for breach of contract and is hoping to secure class action certification.

Is the $2 increase annoying? Sure, but let’s be honest — it’s still a much better deal than what Hulu charges for its commercial-free streaming tier.

Netflix has yet to issue a statement on the lawsuit but we’ll keep you posted as to how this one progresses.

A life long Mac user and Apple enthusiast, Yoni Heisler has been writing about Apple and the tech industry at large for over 6 years. His writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and most recently, TUAW. When not writing about and analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions, the most recent examples being The Walking Dead and Broad City.




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