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Screen Shot 2014-05-09 at 8.19.53 AMAfter the company said it planned to increase prices for its streaming video service in its quarterly letter to shareholders last month, Netflix has made good on its promise.

netflix-imageCustomers interested in becoming subscribers will now have to pay $8.99 a month for the privilege of watching “Orange is the New Black,” “House of Cards,” and all the other content available in Netflix’s catalog.

Existing users don’t have to think about the $1 per month price hike just yet: Netflix will continue to grandfather their plans in for the next two years before raising the price. The $8.99 plan gives users a chance to watch two high-definition streams of Netflix content simultaneously.

In addition, the company is also offering a plan that would allow budget-conscious users to watch a single standard-definition stream for $7.99 a month. That’s similar to a plan Netflix was testing last year, which allowed users the same access for $6.99 a month. All of the moves seem tailored to try and maintain Netflix’s customer base, which took a major hit after its last attempt to raise prices.

The price hike will once again make Netflix’s flagship streaming plan more expensive on an annual basis than Amazon Prime, which recently landed the exclusive rights to stream shows from HBO’s back catalog. During last month’s quarterly earnings interview, Netflix CEO Reed Hastings appeared unconcerned about increasing competiton from the Seattle-based company, and said he thought online streaming video wasn’t a “zero-sum game.”

Is today’s price hike going to make you think twice about starting a Netflix subscription?

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