Netflix will raise its monthly subscription rate $1 to $8.99, but current subscribers will get a two-year reprieve, according to reports.
Netflix sent its subscribers an email about the price hike which will affect new subscribers, according to CNET. After 24 months, current subscribers who now pay $7.99 a month will also have to pay the $8.99 price. Netflix said the price hike is necessary to expand its offerings.
New pricing will also take effect in the United Kingdom where monthly rates will also go up £1 per month, as well as €1 more in the rest of Europe. The lower price for current subscribers is likely to prevent its users from jumping ship. From the Netflix letter, "As a thank you for being a member of Netflix already, we guarantee that your plan and price will not change for two years."
The streaming service has previously created its own content, including the critically-acclaimed Kevin Spacey vehicle, "House of Cards" and women's prison dramedy "Orange is the New Black.."
The company had talked about raising rates last month, mainly to pay for its new content.
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When Netflix last raised rates in 2011, customers revolted and quit the service. Netflix took a more measured approach in 2014 to not alienate its current customer base..