Netflix warned us last summer that its cheapest plans would be getting a price hike. Now the company’s reminding its loyal customers that their previously grandfathered plans will cost a couple dollars extra each month beginning later this year.
For now this only applies to people still playing just $7.99 per month for HD streaming. Once the price hike hits later this year, they’ll have the option to start paying $9.99 for the same service. Alternatively, they can keep paying the same amount for lower standard-definition (SD) quality.
The price hikes will start in second quarter of the year, but may not hit everyone until late summer. Netflix says it expects some people to unsubscribe in protest, but thinks most are already too hooked on the service to give it up. “Given these members have been with us at least 2 years, we expect only slightly elevated churn,” the company said in a recent note to shareholders.
Netflix also has big plans for the future, and plans to put an even bigger emphasis on original programming moving forward. According to David Wells, the company’s chief financial officer, Netflix will eventually be adding more of its own content than licensed videos.
It’s unclear when that shift might actually happen, but considering that Netflix plans to release 600 hours of original shows in 2016, it may not be as far away as you think.