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Netflix Subscription Rates Could Be Going Up

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$7.99 a month to watch all of your favorite shows could be a thing of the past!

Thanks to a major court decision, the cost of a monthly subscription to Netflix could be on the rise.

On Tuesday, the U.S. Court of Appeals shot down rules requiring Internet Service Providers to be neutral in their restrictions on bandwidth. In other words, Internet Service Providers could charge content providers, like Netflix, based on how much bandwidth they use – and HD video uses A LOT!

From USA Today:

Netflix is the leading streaming video provider on the Internet and regularly accounts for a notable chunk of the data flowing across the web, so Wall Street expects the company to be exposed to extra costs from this ruling.

 

Netflix may face an incremental $75 million to $100 million in annual content delivery costs to cable companies for access to their residential customers who are streaming Netflix content, George Askew, an analyst at Stifel Nicolaus, estimated in a note to investors on Wednesday.

 

As a die-hard fan of Netflix, I’m hoping they can keep it under $20. Only time will tell.

Full Story from USA Today Here

 

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