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Netflix to Raise Prices for New Customers

Posted on Apr 21, 2014

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The streaming video service announced it would raise prices by one or two dollars for new customers only, however existing subscribers will likely see their bills match newcomers at some point in the future.

The company currently charges $7.99 a month for streaming to up to two devices at a time.

The news comes as Netflix looks to better compete with rival services from Amazon, HBO and others. Bidding wars with competitors drives up the cost of content, and Netflix has also had to contend with reduced net neutrality. In a controversial move, the company agreed to pay a tax of sorts to broadband Internet provider Comcast in order to ensure steady streams.

Netflix currently has 48 million subscribers, and, along with other streaming services, accounts for half of Internet traffic.

—Posted by Peter Z. Scheer

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