updated 05:43 am EDT, Fri May 9, 2014
E-mails sent to existing Netflix subscribers advising of price freeze
Netflix has started to raise its subscription rates, just as it previously hinted during its recent financial results. After an initial test increase in Ireland, the video streaming service has started to send out e-mails to customers about the increase, which will be affecting new subscribers only, while existing users will continue to receive the service at its current price for the immediate future.
An e-mail received by Electronista this morning notes that in the United Kingdom the price has risen from £5.99 to £6.99 ($10.14 to $11.84) per month, with the justification that it is "in order to continue adding more films and TV programs." The message also guarantees the plan and price "will not change for two years." Engadget reports that similar e-mails in Europe involve a rise of 1 euro ($1.38) per month, while US subscribers are receiving notifications their service will go up to $8.99 per month, also with the two-year grace period.
E-mail sent to Netflix subscribers in the United Kingdom
In its last quarterly financial report, the company revealed it had 46.1 million paying members, with 35.7 million residing in the United States. Revenues for the quarter reached $1.27 billion, giving Netflix a net income of $53 million.