80 percent of people have no idea about the Netflix price hike that's coming next month

Netflix's Slowdown Scandal

Netflix is going to raise prices on around 17 million of its standard accounts next month, and most people have no idea.

In May of 2014, Netflix began to raise the price of its standard streaming plan for new subscribers, first to $8.99 per month, then to $9.99 last October. Existing subscribers, however, were grandfathered into the plan at $7.99 per month for the two-stream, "HD" quality plan.

But those days will soon be over.

Next month, all grandfathered customers will be moved up to the $9.99 plan. Analysts at UBS have estimated that this change will affect about 37% of US subscribers, or 17 million people.

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80 percent of people have no idea about the Netflix price hike that's coming next month
400303 03: Ready-to-be-shipped DVDs roll down an assembly line January 29, 2002 in San Jose, CA. The online DVD rental site Netflix.com has 500,000 subscribers who can rent, receive and return unlimited discs per month by mail. (Photo By Justin Sullivan/Getty Images)
400303 01: Netflix.com Chief Executive Officer Reed Hastings holds a ready-to-be-shipped DVD January 29, 2002 in San Jose, CA. The online DVD rental site has 500,000 subscribers who can rent, receive and return unlimited discs per month by mail. (Photo By Justin Sullivan/Getty Images)
400303 05: Packages of DVDs await shipment at the Netflix.com headquarters January 29, 2002 in San Jose, CA. The online DVD rental site has 500,000 subscribers who can rent, receive and return unlimited discs per month by mail. (Photo By Justin Sullivan/Getty Images)
Netflix CEO Reed Hastings gives a keynote address, January 6, 2016 at the CES 2016 Consumer Electronics Show in Las Vegas, Nevada. AFP PHOTO / ROBYN BECK / AFP / ROBYN BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)
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And most of those 17 million subscribers aren't aware of the upcoming changes, according to research by JP Morgan. JP Morgan recently ran a survey of Netflix users, and about 80% of those who will be "un-grandfathered" in May didn't know the price hike was coming.

How will these subscribers react?

UBS estimates that roughly 3%-4% of affected subscribers will cancel, though many more claim they will (including around 15% of those surveyed by JP Morgan).

Despite the price increase, Netflix still has a lead in "price per hour of entertainment" over pay TV. Netflix costs 9 cents per hour of viewing, while a typical pay TV package costs 30 cents per hour, according to UBS.

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