Here's When Netflix Will Start Raising Prices

For Netflix, Inc. NFLX subscribers, being faced with having to choose from paying a higher monthly fee, receiving lower-quality video streams, or selecting no service at all will soon be the new options.

Netflix sent out a shareholder letter on Tuesday, noting that the two-year period will be expiring this spring.

Just two years ago, the company had raised its rate for its standard monthly plan pricing from $7.99 to $8.99 for new customers. Millions of existing customers were able to keep the standard plan of $7.99 for those next two years.

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For those who currently have a Netflix subscription, those who subscribe in the United States will be paying $9.99 monthly in the next few months.

Netflix's executives Reed Hastings and David Wells, said in the letter that in the second and third quarters of this year, the company will be "releasing a substantial number of our U.S. members from price grandfathering."

"Given these members have been with us at least 2 years, we expect only slightly elevated churn," the executives stated.

CEO Reed Hastings also stated, "We think we'll grow by over 6 million members in Q1 given our expansion of Netflix to virtually everywhere but China," in Tuesday's letter.