It's been almost three years since Netflix' CEO Reed Hastings tried to split the company into two. Since the public outrage and reversal in decision, the company has seen record growths and a myriad of success, even after a price hike at the same time. Well, it appears that it may be time for another change in the company, so you might want to prepare your wallets for the second incoming price increase. This time it's for all you streamers out there.
While the news isn't shocking and the increase won't be happening this year, it is coming. Hastings spoke on this in an investor meeting earlier this week. The announcement came on a day where Netflix stock rose over 10 percent and the company saw a seven-to-one stock split that evening.
Again, this announcement shouldn't surprise anyone who has been following the video-streaming giant for any length of time, as the $7.99 per month price point was something that Hastings said he wanted to change for a while now. If you recall, way back in 2010 Netflix introduced a streaming-only package that matched the cost of Hulu Plus.
Netflix has made over $800 million in revenue from US streaming alone, with another $300 million coming from the rest of the world. With over 40 million US subscribers, a raise to $9.99 per month would prove fruitful for the company, as the team currently shells out $7.7 billion in content licensing.
It's also important to note that the $7.99 per month plan isn't the only package that Netflix offers for streaming. While $7.99 gets you 2 screens and HD-streaming if you were grandfathered in, 4 simultaneous screen watching and Ultra HD runs you $12.99 per month. Hastings said he'd also "encourage" users to move into that higher plan if they don't already have it.