In the past Netflix had allowed subscribers to keep their current price but new members would pay the new higher price. Now Netflix is telling everyone who was on a $7.99 or $8.99 a month plan that soon their bill will go up to $9.99 a month.
“We will phase out this grandfathering gradually over the remainder of 2016, with our longest-tenured members getting the longest benefit,” Netflix wrote in a recent press release.
Now, according to tech analyst Anthony DiClemente, Netflix should see an extra $520 million dollars every year from this new price hike.
So what does Netflix plan to do with newfound money? All indication is the new money is going into content for both original content from Netflix and content from other companies such as Disney.
Netflix recently seems to have noticed that there is a growing unhappiness with their library of content, which has shrunk considerably over the last two years.
Now Netflix is betting on the idea that a slightly higher price of $9.99 a month will allow them to bring in more content and help keep their subscribers happy.
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