Heads up, Netflix users: If you’ve been Netflixing so long that you’ve got a grandfathered-in $7.99 per month, two-stream HD plan, you’re about to be paying $2 more per month starting in May. And chances are, you probably had no idea until now.
A cool 17 million Netflix users who have been part of the grandfathered plan for longtime subscribers will be affected by the price increase, analysts say. That's about 37 percent of total U.S. Netflix subscribers. (We'd love to know how many of those are couch-bound parents too tired to go out on a Friday night.)
A recent JPMorgan survey found that 80 percent of those 17 million who are about to pay $2 more per month had no idea it was coming, and 15 percent of them said they'd cancel their subscription because of it. Analysts at global financial services firm UBS say Netflix will probably see between 3 and 4 percent of those subscribers cancel because of the price hike.
But don't go running to cancel your subscription, say analysts. Even with the price increase, Netflix will still have the best deal in terms of how much you pay per hour of entertainment. That is, Netflix will cost about $0.09 per hour while your average cable package will cost you more than three times as much at $0.30 per hour.
And if you want to get the most out of your now more expensive Netflix plan, you might consider getting a new 2016 model TV or changing your internet service provider. In March, Netflix released its list of new TV models that stack up when it comes to best performance using their product. Models from LG, Samsung and Sony made the cut on the streaming service's list of recommended TV manufacturers.
When it comes to your ISP, your internet connection affects your Netflix experience; picture quality, quicker start times and buffering are all tied to your service, meaning the faster your connection, the fewer interruptions you'll have while trying to binge-watch the newest season of "House of Cards," "The Unbreakable Kimmy Schmidt" or "Orange Is the New Black" (which, ahem, starts back up for a fourth season on June 17 and was renewed in February to run through season 7). Verizon FiOS ranked as the best option for Netflix performance in March, according to the company, while Comcast ranked 6th, Time Warner Cable ranked 7th and AT&T U-Verse ranked 10th.