Netflix to raise subscription cost

ABC: Netflix will charge $2 more for online streaming service — going from $7.99 to $9.99 per month — starting in May.

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“Beginning in May, the price update is rolling out elsewhere based on member billing periods,” Netflix told ABC News in a statement. “Impacted members will be clearly notified by email and within the service so that they have time to decide which plan/price point works best for them.”

UBS estimates that the price increase in May will affect about 17 million users, or 37 percent of Netflix’s subscriber base. But not many people will jump ship, according to UBS. Only 3 to 4 percent of the affected users will cancel, UBS estimates. The investment bank attributes that to Netflix’s pricing power, “strong brand affinity and high user satisfaction regarding ease of use and content selection,” according to a survey UBS conducted in November.

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