Streaming company promises existing customers won't see price hike for 2 years                
Netflix has confirmed that new Canadian customers will see their monthly price increase by $1, but said existing customers would be locked in at their lower rate for at least two years. (Paul Sakuma/Associated Press)           
 
Netflix has officially raised its price by $1 for new members in Canada and elsewhere, while pledging that existing customers won't see fees increase for at least two years.

In a move that had been rumoured for weeks, the online streaming video company said that starting immediately, the price for new Canadian customers would go from $7.99 to $8.99.

"As a thank you for being a member of Netflix already, we guarantee your plan and price (excluding tax) will not change for two years," Netflix told customers in an email Friday morning.

Higher costs Netflix's customer base has grown rapidly but in recent months has struggled with exponentially higher costs to manage its large flow of data over internet infrastructure.

The company is also having to pay more to produce and obtain rights to expensive exclusive shows such as House of Cards and Orange Is The New Black, which customers are demanding.

Customers in the U.K., U.S. and other markets also received the notice. And there, too, the company pledged to keep prices the same for existing customers until at least May 2016.

By delaying the increase for current subscribers, Netflix hopes to avoid the backlash it faced in 2011 when it raised prices by as much as 60 per cent.

The company lost about 800,000 customers within a few months in an exodus that alarmed investors, causing Netflix's stock to plunge by more than 80 per cent in a year. Netflix eventually lured back subscribers and revived its customer growth, lifting its stock to record highs earlier this year.

Source: http://www.cbc.ca/news/business/netflix-canada-to-raise-prices-by-1-1.2637212

$1 dollar here.  $1 dollar there.  It adds up.  People in general are not getting wage increase.  Netflix is a luxury service.  And people need to make cut somewhere.

Plus if you piss someone off.  They may not use your service for years.

Read ya l8r,
EB

Netflix tacked on about 3 million new users across the globe over the past three months, undershooting its forecast of 3.7 million. But perhaps more worrisome, it’s growth in the U.S. fell year over year, reaching just 1 million net new sign-ups.

Price increase will produce huge profit for them, and its not fair to break their word, but I agree with the most people on this thread.
Remember how it was before Netflix started streaming, and how it is now. Great amount of entertainment is available at any moment for just $9. I would pay $20 but don't tell them

To be totally honest, for me Netflix is a total waste. I can watch any show or movie online for free and not need to pay that. As for the increase, though, I guess if subscribers really do love Netflix they'll just pay the extra dollar.

It seems like these streaming companies are turning into cable companies. That one extra dollar will turn some people off as well because we all know what that's about and what's about to happen. If they keep jacking up the prices, they'll start losing business.

I agree with you, Westmixxin. One dollar is not that big of a deal, especially in light of other entertainment choices increasing their own prices. The biggest issue I have with Netflix is their lack on content. I am hopefully they can ramp things up in this area in the near future. Other than that, I have been fairly satisfied with Netflix.

It is called inflation. It happens. It is a fact of doing business. I just kind of roll with it unless it gets to expensive for me.