The online streaming service, Netflix, faces the wrath of more unhappy customers after a lawsuit against the company’s price surge was filed by one user.
For standard UK customers, the monthly subscription package has gone from £5.99 to £7.49 a month, a £1.50 price hike just ten months after last year’s 50p. It has been estimated that up to 22 million people have potentially been affected by these price increases.
This shift in price follows a similar move made in the US, where long-term customers face a two dollar increase, augmenting the cost to $9.99 per month. For Americans, it’s the second time Netflix have increased prices since May 2014, which bumped the $7.99 package to $8.99 at the time.
One extremely disgruntled customer, George Keritsis, is going against the corporate giant. Keritsis claims he saw an advert promising that Netflix would guarantee a $7.99 monthly subscription fee. After calling the company to confirm, he was reportedly told that the fee would be “grandfathered” but now faces the $9.99 charges.
“For a period of time, Netflix solicited new subscribers by guaranteeing that Netflix would not increase monthly subscription prices as long as the new customers maintained the subscription service continuously”, states the proposed class action lawsuit.
“Netflix has broken its contract with these subscribers by unilaterally raising monthly subscription prices”.
The lawsuit would not only cover Keritsis himself, but “all persons who entered into an agreement with Netflix for a streaming plan at a subscription price that Netflix promised not to increase for as long as they continuously maintained their subscriptions”.
Netflix is yet to respond to the lawsuit but it is not the first that the online streaming giants have had to face. Last year Veronica Brown, the mother of 16-year-old Amanda Brown, sued Netflix after a ‘Netflix and Chill’ session resulted in her daughter’s pregnancy.
Since its launch in 2012, Netflix has seen a rapid expansion with more than 5 million UK households signed up to the service. Its competitors, Amazon Instant Video and Sky’s Now TV are yet to come close to matching its success.
However, whether Netflix will continue to top the entertainment pyramid may be called into question if prices continue to surge and disgruntle their once-loyal customers.
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