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Here Comes the Netflix Price Hike

Andrew Harrer | Bloomberg | Getty Images

Last month, Netflix told investors it would raise prices for its streaming video service. Now they're doing it.

Read MoreNetflix raising prices for new members

New Netflix subscribers will now pay $9 a month, up from the $8 level the company has had for several years. If you're one of the 35 million Americans who was already paying for a subscription, your price won't go up for two years. The company is instituting similar hikes in Europe.

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Here's the PR explanation of the hike: "To continue adding more movies and TV shows and delivering a great streaming experience, we previously announced that we planned to increase our price slightly for new members. That increase is happening today. We are increasing the price of our service by US$1 a month for new members. Existing Netflix members get to keep their current (US$7.99) price for two years, enjoying HD-quality movies and TV shows on any two screens at the same time."

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And here's how Netflix is communicating the change to its members:

In order to continue adding more movies and TV shows, we are increasing our price from $7.99 to $8.99 for new members. As a thank you for being a member of Netflix already, we guarantee that your plan and price will not change for two years.

You can review your membership details at any time by visiting Your Account. As always, if you have questions, we are happy to answer them. Please call us at any time at 1-888-357-1516.

–The Netflix Team

By Peter Kafka, Re/code.net.

CNBC's parent NBC Universal is an investor in Re/code's parent Revere Digital, and the companies have a content-sharing arrangement.

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