Netflix (Nasdaq: NFLX) shares are lower amid strong Q4 results as investors note that Netflix is planning to squeeze its most loyal customers a bit over the next few quarters.

According to the company's Q415 letter to investors: In Q2 and Q3, we’ll be releasing a substantial number of our US members from price grandfathering on the HD plan and they will have the option of continuing at $7.99 but now on the SD plan, or continuing on HD at $9.99 a month. Given these members have been with us at least 2 years, we expect only slightly elevated churn.

So, Netflix is planning charge a bit more to those that have been with the company for some time. The 25 percentage hike probably won't be much to most and folks will either see enough value to continue with the service, or forego it for a competing service.

The initial reaction is that growth in the key U.S. market has slowed so much, that Netflix has to increase prices to keep profits flowing. Conversely, the cost of content continues to rise and, even operating in a growth market, Netflix needs to be able to have a war chest ready to lock down key content before competitors do.

Shares of Netflix are down 1 percent at the start.