Back in October, Netflix raised the price of the standard subscription — which includes high-definition streaming on one screen — from $8.99 to $9.99 for new subscribers, with current members staying at the same price for about a year. But there were those that had been grandfathered in and were allowed to keep paying just $7.99 for that service.
They’re now facing a $2 price hike, after Netflix said in its fourth-quarter letter to investors that it will release a substantial number of those subscribers from their grandfather clause. The company didn’t specify when exactly that will happen, but said it will be ongoing through the second and third quarters, reports MarketWatch.
CEO and co-founder Reed Hastings doesn’t seem concerned that subscribers will drop the service when the price goes up later this year.
“It’s pretty simple, we’ll let them know that on a certain date, the price will go up. It’s pretty straightforward,” Hastings said Tuesday.
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