Are You Among The 500,000 Netflix Users About To Cancel Your Membership?

By the end of the year, 27 million people in the U.S. will be paying more for their Netflix, Inc. (NASDAQ: NFLX) membership than they have in the past.

According to Variety, Netflix's planned price increase to $9.99 per month will result in approximately 480,000 customers saying goodbye to their memberships. The figure comes from an analyst research report written by Anthony DiClemente of Nomura Securities.

"We note that this has long been a tenet of our investment thesis on the domestic business, as slowing subscriber trends are more than offset by increased monetization," the analyst was quoted as saying in his research report.

Nevertheless, Netflix will still walk away with an incremental $520 million in annual revenue.

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Variety noted Netflix began increasing the monthly fee for a standard HD service by $2 to $9.99. Customers who signed up for the plan at $8.99 in 2014 will see their monthly fee jump to $9.99 in October.

A single-stream, standard-definition plan will however be offered to customers for $7.99 a month.

Shares of Netflix were trading lower by around 0.13 percent mid-Monday and are lower by more than 17 percent since the start of 2016 and trading nearly flat from a year ago.