Netflix makes price increase official, but adds some confusion

We've known for a while now that Netflix was planning a price increase, though the company hadn't specified the amount it would up the cost to customers. That changes today and, while the increase is minor, the company has thrown in a bit of confusion to keep folks on their toes.

The actual change in cost for the streaming movie and TV service is $1, upping the fee from $7.99 to $8.99 per month. However, it is not all just that simple.

First, current customers are grandfathered into the $7.99 price, and the increase will only affect new subscribers. But that guarantee is only good for two years, at which point the cost to previous members will also rise.

It gets a bit more complicated when you factor in another part of the announcement. The $8.99 plan is for HD viewing, but customers can opt for a $7.99 standard definition version as well. This new SD tier allows for viewing on only one screen at a time, which likely isn't much of a deal killer for most folks.

The company cites adding new content as the reason for this increase, but it's hard not to think that added costs from service agreements with the likes of Comcast and Verizon are not a factor in this price hike.