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updated 5/9/2014 10:46:13 AM ET 2014-05-09T14:46:13

We knew it was coming. But as of today, it's official. Netflix is hiking up its prices for new subscribers, charging them $8.99 instead of $7.99 a month.

For those of you already binging on the service, fret not: as rumored, Netflix will exempt current subscriptions from the price hike for another two years.

This is the first price increase for the Los Gatos, Calif-based company in three years. Last time around  was pretty disastrous. Netflix increased its prices 60 percent overnight, pissing off 800,000 customers so much that they dropped the service.

Netflix has clearly learned its lesson – when it comes to price increases, subtle is a good approach. Drastic? Not so much. This time, the price hike was announced in advance, it’s a pretty modest jump and existing customers won't pay the new price for another two more years.

Related: Learning From Past Mistakes, Netflix Takes New Approach to Price Hikes

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