Friendly reminder: Your monthly Netflix bill is about to go up

Netflix headquarters (Credit.com)

COLUMBUS (Credit.com) — Remember a while back when Netflix was a total bro and let current subscribers keep their lower monthly subscription rate instead of charging the higher rate that new customers received? That’s changing next month.

In 2014, Netflix raised the price of its monthly standard streaming plan from $7.99 to $9.99, and existing customers rejoiced when they were allowed to keep their $2-a-month savings. But the clock has run out on that savings and in May, many subscribers who were grandfathered in will join the newbies at the $9.99-a-month rate.

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Let’s crunch the numbers on that. Previously, a year’s worth of Netflix cost standard subscribers $95.88 a year. The new rate will be $119.88 a year. To put that in context, an Amazon Prime subscription, which includes a collection of free streaming video as well as other Amazon perks, is $99 a year. Netflix competitor Hulu charges users $7.99 a month ($95.88 a year) for its limited commercials plan and $11.99 a month ($143.88 a year) for its no commercials plan.

While the price increase won’t necessarily break the bank for many consumers, analysts reportedly expect a small percentage will unsubscribe due to the shift.

Monthly subscriptions are often a place consumers target when they’re re-evaluating their budget needs or want to pay off debt, especially if they aren’t making the most of the offering. If you do cancel, be sure to keep an eye on your credit card or debit card statements and make sure the charges don’t continue — a good rule of thumb for canceling any regular subscription charge to your credit card. Monitoring your financial accounts can also help you spot fraud and potential identity theft. You can also monitor your credit scores — you get two credit scores for free every month on Credit.com — to spot signs of identity theft as well.

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