Netflix, Inc. (NASDAQ:NFLX) has released the initial details regarding the upcoming price hike for its U.S, UK and Europe customers. According to the statement, UK customers will pay an extra £1 per month and those in Europe will pay additional €1. The monthly subscription price has been increased by $1 for U.S. customers. The service will now cost $8.99 per month, as confirmed by CNET in conversations with the company.
For new subscribers, the price hike is effective immediately. Those who are already signed up for a Netflix, Inc. (NASDAQ:NFLX) subscription plan will not pay any additional fees for two years. The online video streaming service confirmed this, saying, “As a thank you for being a member of Netflix already, we guarantee that your plan and price will not change for two years.”
Netflix service now costlier than Amazon
Netflix, Inc. (NASDAQ:NFLX) also promised to offer a competitive streaming package at the old prices. By paying £5.99, subscribers can watch the content on standard resolution, and can stream to just one screen at a time. By paying a premium price of £8.99 customers can stream up to four screens in super HD.
Netflix, Inc. (NASDAQ:NFLX) has enjoyed immense success with its original content House of Cards (starring Kevin Spacey) in which the company invested €100 million. The full series of House of Cards can be streamed at once. Original content prison drama Orange is the New Black is also extremely popular. Netflix is also planning to stream a few children’s programs. Netflix services are now $1 costlier than the Amazon Instant Video, which offers it’s service for £5.99 a month.
Confident with its growing success
Netflix, Inc. (NASDAQ:NFLX) mentioned in an email to subscribers that it is hiking its price from £5.99 to £6.99 for new members so it can add more films and TV programs. House of Cards enjoys a huge subscriber base, and the company experimented by increasing the price in Ireland, which showed no noticeable loss of subscribers. Netflix is confident enough to take a chance by changing the price structure in other major markets and hoping to not lose subscribers.
Netflix, Inc. (NASDAQ:NFLX) earned profits of $53 million in the first quarter of 2014 and the company’s subscriber base surged by 2.25 million. The streaming company is targeting to outperform cable channel HBO, which currently has 130 million subscribers.