Netflix (S NFLX) made its price increase official Friday morning, announcing that new members will have to pay $8.99 per month going forward. The company also introduced a new SD streaming plan that will give users access to the entire catalog, but only in standard definition and only on one screen at a time, for $7.99 per month.
Existing members will continue to pay $7.99 for two years, after which the company will adjust their monthly fees as well. Netflix’s family plan, which offers HD access for up to four screens at a time, remains unchanged and will continue to cost $11.99 per month.
The price increase doesn’t come as a surprise: Netflix executives have been talking about introducing more differentiated pricing for some time, and the company announced that it would raise prices for new members in conjunction with its most recent earnings release.
Developing story, more to come.