Netflix has revealed plans to increase prices – but for new customers only.
As the company announced a rise in profits, Netflix chief executive Reed Hastings announced that the monthly cost for the service is set to increase shortly.
Hastings said in a breifing to shareholders: “Our current view is to do a one or two dollar increase, depending on the country, later this quarter for new members,” said Netflix chief executive Reed Hastings.
Hastings reiterated that existing customers would continue to pay at their currrent rate after the new prices. If you’re paying £5.99/month for Netflix then you’ll contineu to pay that after the new prices take effect, although if you leave Netflix and renew your subscription later it’s possible that you’ll pay the new, more expensive price.
Earlier this year, Netflix increased its monthly cost for new subscribers in Ireland from €6.99/month to €7.99/month, while promising to keep existing customers on the older price for two years.
Netflix said that impact from it’s January price hike in Ireland was limited. This suggests that we could see a similar arrangement happening in the UK, but Netflix hasn’t said anything about British prices changing today.
The streaming service says that it’s raising its prices in order to pay for more original and exclusive content, like House of Cards, the second series of which landed this February.
Netflix says that is wants to close the gap in premiering American and British TV shows across the world: “Traditionally, even the most popular American series are withheld from international viewers for several months at a minimum, which has contributed greatly to the growth of piracy. We are tightening that window to less than 7 days, and wherever possible, to within 24 hours.”
This is something which HBO and Sky have worked to acheive with Game of Thrones, making it available to watch on Sky Atlantic and Now TV a day after the original broadcast. Still, this approach hasn’t stopped the flesh-heavy fantasy romp from becoming a Pirate Bay hit.
Netflix says that it now has 48 million subscribers worldwide, thanks in part to a big hit with season two of House of Cards. Netflix membership grew by 1.75 million since the end of 2013, an increase of 72 per cent on the same time last year.