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Netflix Raising Prices for New Subscribers

Despite no apparent change on the company Web site, Netflix has alerted existing Netflix members via email that it is raising prices for its streaming video service by $1 — from $7.99 to $8.99 per month — for new members. However, the company is guaranteeing the current $7.99 price to existing customers for two years.


The reason for the price increase is largely due to Netflix spending more on licensing content and creating original content, but it may also relate to peering deals Netflix recently cut with both Comcast and Verizon. The two ISPs have been accused of throttling Netflix content, but both companies have denied those claims.

 

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