Netflix Price Increase 2014: California-based Company Hikes U.S. Streaming Plan by $1 Per Month for New Subscribers; Charge bumps of £1 and €1 For UK And Europe Respectively

Netflix Price Increase 2014: Netflix is increasing the price of its streaming plan by $1 for new members. The same is true in the UK and Europe, which are also seeing price bumps of £1 and €1. This is the first price increase that the streaming plan has seen in most regions since its introduction in 2011. Other regions may also be seeing a similar price change according to The Verge.

Netflix will allow all existing subscribers to continue paying their lesser rate for another two years.

A Netflix spokesperson says in a statement, "To continue adding more movies and TV shows and delivering a great streaming experience, we previously announced that we planned to increase our price slightly for new members. That increase is happening today." In the US, the basic streaming plan will now cost $8.99 per month. Monthly fees for new users in the U.K. will increase to £6.99 and €8.99, respectively.

The Los Gatos, California-based company disclosed its plans to raise its rates last month without specifying the precise amount.

According to The Verge CEO Reed Hastings announced that the price hike was coming last month, at the time explaining that it would likely be a one to two dollar increase and that existing members would be grandfathered into their current plans for a "generous" period of time. With a two-year price lock, it's hard to argue that Netflix didn't live up to its promise.

Hastings said last month, "We want to get this done well and make sure we grandfather people cleanly."

Netflix hopes to avoid the backlash it faced in 2011 when it raised its prices by as much as 60 percent by delaying the price increase for current subscribers.

According to Yahoo, the company lost about 800,000 customers within a few months in a hegira that alarmed investors. It caused Netflix's stock to plunge by more than 80 percent in a year. Netflix eventually lured back subscribers and revived its customer growth, lifting its stock to record highs earlier this year.

The company has experienced phenomenal growth worldwide, in large part because of its relatively inexpensive subscription fees. In the first quarter of 2014, Netflix added a net 2.25 million streaming subs in the U.S. and 1.75 million internationally. As of the end of March, it tallied 35.67 million domestic streaming subs, up 22% from a year earlier. International subscribers stood at 12.68 million (up 78% from Q1 2013), Variety reported.