Are you a subscriber of Netflix? You need to be aware that Netflix is going to increase the prices in the coming months. But many do not have a clue either. Starting May 2014, the prices for a standard streaming plan were put at $9.99 a month. Existing subscribers entered the plan through the grandfathered scheme at $7.99 every month for HD quality plan of two streams. But now, this may comes to an end. All the grandfather customers will be upgraded to $9.99 plan. UBS states that about 17 million people or 37% of the American subscribers will be affected by the new change. The irony is that most of these 17 million are not aware of the proposed change as informed by JP Morgan research.
About 80% of the subscribers will now be increased and they did not know about that the price hike is coming in May. Now how does it matter? According to UBS estimate there would be a cancellation of accounts by 3-4% of the affected subscribers. But many are likely to continue including the 15% surveyed for JP Morgan. The increase in price hike may not affect Netflix, it is predicted. A comparison has been put up by UBS, accordingly when compared to over pay TV, the cost of per hour viewing in Netflix is 9 cents when compared to other pay TV packages where it costs 30 cents per hour.
According to Netflix all the customers will get an email notification on the new plans proposed by the company. Netflix will be introducing a $8 a month plan for videos in standard definition form allowing only one person to use the account at a time. There is also a higher version price of $12 per month that broadcasts videos in ultra high definition that allows customers to watch videos on four screens simultaneously.