Netflix has announced on Friday (today) that it is raising its monthly subscription price for new customers, by a dollar, to $9 dollars and that existing customers will continue at the $8 rate for two more years along with the ability to streaming video on two different devices at the same time.
The rate increase was also put into effect in several other countries in which Netflix offers service, but not all 41 countries in which it operates.
Unlike the rate increase in July of 2011 in which the company saw a large exodus of customers when it tried to raise rates by as much as 60% for some customers, the analyst expects this first increase in three years to be accepted by consumers.
Search More About Netflix
Netflix also has been negotiating with internet operators for better internet speeds in exchange for a fee for its content not being throttled in upcoming net neutrality legal actions, if such service is allowed by the FCC.
The company said the rate increase will also help it fund new original shows and by licensing for more TV shows.