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Netflix, the most popular movie and streaming service in the U.S., has announced that it is raising prices for new subscribers. The company did say that it will keep current subscribers at the price they already pay.
In an email to subscribers, Netflix said that the streaming service will jump $1, from $7.99 a month to $8.99 a month. If you are already a subscriber, you will continue paying $7.99 a month for the next two years.
This news was widely expected. CEO Reed Hastings told investors last month that a “one or two dollar increase” was being considered. “Existing members would stay at current pricing (e.g. $7.99 in the U.S.) for a generous time period,” Hastings added.
“If we want to continue to expand to do more great programming we have to eventually increase prices a little bit,” Hastings further explained.
Indeed, Netflix is building its roster of original programming. House of Cards will be shooting its third season this summer and Orange is the New Black was picked up for a third season. The company also signed its first multi-year deal with a writer, Arrested Development creator Mitch Hurwitz.
Another project in the works is a comedy starring Jane Fonda and Lily Tomlin called Grace and Frankie.