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Netflix users could be hit by two price increases this year

Irish Netflix users face the prospect of being hit by two price rises this year, as the company has confirmed that new users will not be spared a general increase.

It had been hoped that because Ireland was used as a test country for a price increase in January it would be spared any further subscription hike.

But a spokesman for the movie-streaming company said a second increase is "likely" to apply to new Irish users some time in the coming months.

This means there will be three different subscription fee levels for Irish Netflix users, depending on when the user joined.

For pre-2014 subscribers, the rate stays at €7 per month until the end of 2015. For those who joined between January (when the rate rose to €8 per month for new users) and the next price increase, it will remain at €8 per month for the foreseeable future.

IMPACT

However, new users from this summer are likely to face a subscription fee of €9 per month.

It is unclear whether a fourth tariff – €12 per month for those who want to view the service on four screens simultaneously – will also see a price rise.

Netflix is estimated to have at least 175,000 Irish users.

"As expected, we saw limited impact from our January price increase for new members in Ireland (from €6.99 to €7.99), which included grandfathering all existing members at €6.99 for two years," said an earnings statement from the company last night.

Netflix that the price increases were being implemented to "enable us to acquire more content and deliver an even better streaming experience".

The company faces rising costs from making its own television series, including the critically acclaimed political thriller House Of Cards with Kevin Spacey and Orange Is The New Black.

This year, the company will broadcast several new original series.

HNEWS@HERALD.IE


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