17 Million Netflix Users Are About To Pay More In Fees And Most Don’t Even Know It
Are you one of those people who pays $7.99 for a Standard (two-stream) Netflix subscription? Did you know that in May you will begin paying $9.99 for that service? Because a recent survey says that about 80% of you had no idea.
You may have read or heard about the price increases that went into effect last year when Netflix changed the Standard service fee to $8.99 then again bumped it up to $9.99 in October. However, that was for new subscribers only. If you had your service prior to then you were “grandfathered” in your usual $7.99 fee.
That all changes next month.
Reports Business Insider…
Next month, these grandfathered customers will be moved up to $9.99 for the standard plan. Analysts at UBS have estimated that this change will affect about 37% of US subscribers, or 17 million people.
And most of those 17 million subscribers aren’t aware of the coming changes. In a recent JP Morgan survey, about 80% of those who will be “un-grandfathered” in May didn’t know the price hike was coming.
How will these subscribers react?
UBS estimates that roughly 3% to 4% of affected subscribers will cancel, though many more say they will (about 15% of those surveyed by JPMorgan).
While an additional two dollars may not seem like a lot, I know it isn’t to me considering how much of the service I consume, it does mean an additional $34 million a month in revenue for Netflix. That’s assuming all 17 million subscribers at that level of service stay with it after the increase.