Netflix comes through with price hike after struggles with Comcast, Verizon

As promised, Netflix has raised its streaming subscription fees for new users to $8.99, from the $7.99 price it set three years ago.

The price hike was promised in the company's most recent shareholder letter, where it stated that past subscription plan changes taught the company a lesson about changing too much too quickly.

The outcry was swift and virulent. Netflix recanted on the rebrand, though the prices stuck. This time around, Netflix is being more cautious. The company hinted heavily in its shareholder letter that the price increases were coming as a result of the paid peering arrangements the company has struck with providers like Comcast and Verizon, which were damping the site's traffic on the accusation that it uses too much of their resources.

The price increase applies only to new subscribers.