Netflix raises subscription prices by an extra $1 a month

LOS GATOS, Calif., May 9 (UPI) -- Netflix said that it will raise subscription rates for its video streaming service by $1 to $8.99 per month, with the new rates affecting only new subscribers.

The new rates will not apply to existing subscribers who have been given a two year grace period. New customers in U.K. will have to pay £1 and those in the rest of Europe will pay €1 per month.

"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," a Netflix spokesperson said in a statement. "That increase is happening today."

This is first the price increase for the company since the streaming service's introduction in 2007. Netflix CEO Reed Hastings has announced last month that the company was considering raising subscription rates and that the increase would no be more than a dollar or two.

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