Netflix hikes U.S. subscription price by $1 a month for new subscribers
LOS ANGELES - Netflix Inc on Friday increased the price of its most popular video streaming plan by $1 a month to $9 for new customers in the United States, the company's first price hike in its largest market in three years.
The movie and TV streaming service suffered from a consumer exodus and stock plunge after it announced an unpopular price increase in July 2011 of up to 60 percent for some U.S. members. This time, the increase is 12.5 percent, and the company is letting current customers keep the $8-a-month price for two years for a plan that allows for two video streams at the same time on different devices. The price for U.S. customers to receive DVDs in the mail will remain the same, starting at $8 a month. The company said on April 21 that a price hike was coming, and analysts speculated that Netflix would see little backlash for a small price hike, given growing demand for its service. Netflix built itself into a major force in Hollywood, spending heavily for content for its 35.7 million streaming subscribers in the United States, and 12.7 million in Latin America, Europe and Canada.