Netflix Jacks Monthly Membership Fee

If you’ve been sitting on your duff and dithering over whether or not to get Netflix, you've got some bad news in store: the streaming video service just raised its prices from $7.99 per month to $8.99 per month. This increases the yearly cost of Netflix from $95.88 to $107.88, and makes it more expensive than Hulu Plus ($95.88 per year) and Amazon Prime Instant Video ($99 per year), its nearest competitors.

The Netflix price increase is not all doom and gloom, however. The $8.99 price only applies for new subscribers, meaning that if you're a current Netflix subscriber — even if you only started using it yesterday — your current rate is guaranteed for the next two years. After that, Netflix will probably increase it, but may still offer other incentives for longtime members.

MORE: 5 Cheaper Netflix Alternatives

Netflix has already increased its prices elsewhere in the world without too much of a shakeup. Last month, the streaming service raised its prices for Irish subscribers from €6.99 ($9.63) to €7.99 ($11.01) without a marked drop in subscribers or increase in profits.

There’s no clear indication as to why Netflix is increasing its prices, but aside from simple profit, the company may also be dealing with ramifications from its Comcast deal. The cable company Comcast had been throttling Netflix and giving users a subpar experience until it strong-armed Netflix into a deal. While the specifics of the deal are known only to Comcast and Netflix, chances are Netflix had to pay a pretty penny to keep its service running at a reasonable rate for Comcast users.

While this price increase may cause some grumbling among Netflix users, it’s unlikely that many current subscribers will drop the service, given that they won’t have to pay an extra cent for the next two years. Whether new subscribers are willing to stomach $8.99 per month, however, is something that videophiles — and Netflix — will be very eager to learn.

Follow Marshall Honorof @marshallhonorofand on Google+. Follow us @tomsguide, on Facebook and on Google+.

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Marshall Honorof

Marshall Honorof is a senior editor for Tom's Guide, overseeing the site's coverage of gaming hardware and software. He comes from a science writing background, having studied paleomammalogy, biological anthropology, and the history of science and technology. After hours, you can find him practicing taekwondo or doing deep dives on classic sci-fi. 

  • Shaun o
    If I used the service I would not mind, if in return it offered me something more as a long time customer.

    A few weeks ago a next door neighbor ordered there broadband service, and got for the same price I pay a 50 Mbps
    I have 30Mbps, and Virgin media say my speed will be upgraded to 50 Mbps in 2015.

    To be honest that`s a bit of a snub, using there service for 10 years plus for broadband. There is not such thing as customer loyalty or valued. Gone fishing ! as I like to say.
  • xforce_dac
    I dont know how the headlines for articles are devised. I recognize that this is a price increase. I hardly think a one dollar a month rise in price is worthy of "jacks monthly membership fee".
  • Matthew Cacophony
    @xforce_dac It's a 12.5% increase. If anything else increased in price 12.5% people would lose their minds. That's a $20 a month increase on cable, an extra 50cents / gallon on gas.
  • fkr
    i received an email saying that my price will not go up and I am locked in for 2 years at current pricing while new customers will be charged more
  • Pikachu Chooses you
    I don't mind paying more, If I'm getting more, they need to add more tv shows, more movies. If you watch TV when they air you already seen them all on Netflix, minus the foreign ones, which I then watch but then not all of them are my type, most foreign shows is some type of romantic drama or comedy you can only watch so many of those.
    As for movies after about 6 months you pretty much seen it all on there, and I still don't know when new stuff comes, when it does, its like 5 movies per a month, only 1 of them interesting. others are depressing sometimes good independent movies.

    so yea basically they need all three companies need to have more varieties.
    I got Prime too, and that has the same problem, sometimes feel like sure they have many of the popular tv shows all season minus the newest some that Netflix doesn't, but they are much more limited on the content. Actually they do have more content but only if you pay for them separately, and that's a negative.

    Hulu- same bunch of tv shows I watched already.
  • swanman823
    I don't subscribe to Netflix but since I just bought a smart TV I am considering it. This article and as someone above mentioned the headline is a joke. Look at what we pay for cell phones, cable, internet, even pay per view on cable. If $1.00 more per month is going to make someone not sign up, they shouldn't even be able to afford a TV. Do we stop buying gas when the oil companies raise the price, food goes up every day, I wish my utility rates only increased that much. All the while Obama tells us there is no inflation.
  • romdude
    A 12.5% increase in a $600 item like a smartphone is a jack in prices whereas $1 more per month increase in net flix won't really break the bank.
    @xforce_dac It's a 12.5% increase. If anything else increased in price 12.5% people would lose their minds. That's a $20 a month increase on cable, an extra 50cents / gallon on gas.

    Are you serious? A 12.5% increase in a $600 item like a smartphone is a jack in prices whereas $1 more per month increase in netflix won't really break the bank.
  • regguy
    Hundreds of shows, all for free. Why would anyone pay Netflix?
  • Auf Hebung
    Wait, it's jacking the price from approximately 27 cents per day all the way to to a crushing 30 cents per day?!?! OUTRAGEOUS!! Netflix is done! Do they really think I can afford another twelve bucks EVERY YEAR?!?!!
  • Auf Hebung
    ....I mean, for twelve bucks I can get a halfway decent medium pizza!!