Netflix raising prices by $1/month; existing subs unaffected for 2 years

|By:, SA News Editor

Netflix (NFLX) is raising the price of its basic U.S. streaming service for new subs by $1/month to $8.99/month. However, an e-mail sent out to many existing customers tells them their prices won't change for two years.

Netflix, only 3 years removed from the Qwikster debacle, stated last month it plans to hike prices for new U.S. and foreign subs by $1-$2/month (depending on the country) in order to finance more content spend. But it added existing subs will maintain their current pricing "for a generous time."

With Netflix possibly on its way to having 70M+ global streaming subs in two years - it currently has 46.5M - a $1/month hike could yield over $800M/year in extra revenue by the time it reaches Netflix's entire base.

NFLX -0.3% premarket.