Netflix CEO in his letter to shareholders announced that a $1 or $2 raise for new subscribers is right around the corner (later this quarter, so before July) and while existing subscribers won’t be hit immediately, the phrasing: _Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period._ makes it pretty obvious what will happen before the year is out.
It’s kind of a mystery to me how Netflix manages to stay profitable on such a low subscription model, so I’m fine with a small increase. In theory it’s an opportunity for a competitor to step in, except I already have Hulu+ as well and Amazon Instant streaming doesn’t work on most of my devices so it’s a non-starter.
And let’s face it the combination of Hulu+ and Netflix is a hell of a lot cheaper than pretty much any Cable TV package.
Source: Netflix Letter to Shareholders