It’s official: new Netflix users will pay $1 more per month

Coming as a shock to no one, Netflix’s ridiculously-low prices are going up. Specifically, they’re increasing by prices for new customers by $1 per month, from $7.99 to $8.99. The company will still offer a single-stream SD tier for $7.99/month.

Current Netflix users will continue at the regular $7.99/month price, which includes HD videos and two simultaneous streams, for two years.

While the company didn’t explicitly justify the price increase, the cause it widely believed to be in part due to the higher cost of bandwidth transmission. Netflix recently entered a deal with Comcast and Verizon, two of America’s largest ISP’s, for direct access to their pipes. Netflix’s CEO, Reed Hastings, wrote in a blog post in March, “Some major ISPs, like Cablevision, already practice strong net neutrality and for their broadband subscribers, the quality of Netflix and other streaming services is outstanding. But on other big ISPs, due to a lack of sufficient interconnectivity, Netflix performance has been constrained, subjecting consumers who pay a lot of money for high-speed Internet to high buffering rates, long wait times and poor video quality.” These fees ensure Netflix users get a good experience, regardless of price tier.

Netflix is currently available on nearly every mobile platform, as well as the web and many set-top boxes and connected TVs.