Following this week’s announcement of iOS 8, Apple has sent out notifications to existing paid iCloud storage customers notifying them of new, reduced prices for their existing storage plans, along with pro-rated refunds for the balance of the reduced plan price. Customers who have already purchased iCloud Storage under the old annual pricing model retain whatever storage capacity they purchased, at a price now reduced to the next-lowest tier available. For example, a customer who had previously purchased the 25GB storage plan for $40/year will have their price reduced to $11.99 annually, roughly equivalent to the new 20GB plan now available for $0.99/month. Customers will be able to retain these plans at the new annual subscription prices, offering a slight storage bonus over the new plans that are now available on a monthly basis.
Update: Several readers who were on the smaller 10GB/$20 plans have reported also having their storage increased as part of this transition. Presumably, since 20GB is now the smallest capacity available under the new iCloud Storage plans, these users get bumped up to the 20GB plan for $11.99/year, also receiving a pro-rated refund of the difference between plan prices.