“If you logged on to Netflix over the weekend [in Australia] you may have been shocked to see price increases for all subscriptions,” Rob Stott reports for BuzzFeed News.

“The streaming giant has been quietly testing out users’ reactions to higher subscription fees ahead of the introduction of the so-called “Netflix tax”, which will see the GST applied to overseas digital purchases, and will come into effect from July 1,” Stott reports. “The tested new fees shown to some viewers saw Netflix’s basic ­service increase from $8.99 a month to $9.99, its standard service increase from $11.99 to $13.99 a month, and its premium service from $14.99 to $17.99.”

“By Monday morning increased subscription prices shown to some customers had reverted back to normal,” Stott reports. “A spokesperson for Netflix said the service wants to be transparent about its testing, and users will be notified before any fee increases are fully implemented.”

Read more in the full article here.

“Wall Street has valued Netflix as having a good deal of pricing power,” Brian Sozzi writes for TheStreet. “The Street has seemingly forgotten the harsh reaction to Netflix raising prices back in 2011 and how the streaming giant had to backtrack. To keep Netflix shares hovering at insane levels, CEO Reed Hastings will have to push some form of serious price hikes through — and not five years from now.”

Also, “Netflix has to raise prices to support rising sums to develop content and lay the foundation for its streaming service across the world. Keep in mind Netflix continues to burn through an absurd amount of cash. At some point Wall Street will demand cash generation, consistent if possible,” Sozzi writes. “Start saving those pennies, Netflix users.”

Read more in the full article here.

MacDailyNews Take:

SEE ALSO:
Netflix spilts DVD-by-mail and streaming services; CEO Hastings: ‘I messed up’ – September 19, 2011
Price-raising Netflix is tone-deaf on public perception – July 26, 2011
Netflix increases prices, changes DVD and streaming plans – July 13, 2011