Your Netflix Subscription Price Is About to Increase
- Author: Kyle Peterson Oct 06, 2017,
Oct 06, 2017, 0:25
Subscribers to two out of three main Netflix plans in the US getting its monthly fee jacked up as the company lays out billions for content.
Netflix last raised prices in the USA in October 2015 when its Standard subscription went from $8.99 to $9.99 for new members.
Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading.
The price increase is effective immediately for new subscribers but existing subscribers will see the price hike implemented over months.
Netflix posted the new prices on its website on Thursday morning.
The price hikes only affect US customers and will go into effect in November. For $13. 99 subscribers get streaming on up to four screens at a time in high definition.
Netflix made the decision to increase the price of its plans in an effort to increase margins while it continues to spend billions creating hit original content such as "House of Cards" and "Stranger Things", according to the Associated Press. The company is raising prices for customers with the "Standard" and "Premium" service packages, Mashable reported Thursday.
Shares of Netflix jumped more than 3 percent following the news.
The $1 or $2 increase may not be much to you, but that adds up quickly for a company with a potential subscriber total over 100 million beyond North America. It also has a larger pool of content for viewers to enjoy.
The increases likely won't have an effect on the number of subscriptions the popular streaming service has.