Netflix Announces Its Biggest Streaming Price Increase Ever
- Author: Kyle Peterson Jan 16, 2019,
Jan 16, 2019, 0:36
Netflix is one of the world's most popular streaming services and is harnessed by users across the globe.
And for the first time in the company's history, the basic plan, which offers a single-streaming option, will cost users an extra dollar. Its most popular plan will now cost $13 per month, up from $11 per month.
Why is Netflix raising its streaming prices?
The new prices will apply to new Netflix subscribers immediately, while existing subscribers will be moved to the new pricing plans "over the next few months", the company says. Customers in about 40 Latin America countries where Netflix bills in US currency will also be affected, excepting key global markets such as Mexico and Brazil.
US subscribers will see their monthly rates climb by 13 percent to 18 percent - that largest increase since Netflix launched its streaming service more than a decade ago, EW has confirmed.
Netflix shares jumped by around 6 percent during early- and mid-morning trading, reaching an intraday high of $355.50 after opening at $349.60. The base plan offers SD streaming for one device and is increasing from $8 per month to $9.
As we heard this past October, Netflix isn't afraid to take a pay raise. In fact, last quarter Netflix said its subscriber pool has grown by 10.7% year over year, and it now sits at 58 million subscribers in the US and 78 million internationally.
Does "improving the overall Netflix experience" mean promoting new series/seasons on the home page when I log in?
Netflix's previous subscription increase in 2017 did little to slow growth, as Netflix added 24 million customers that year.
Netflix is scheduled to report its fourth-quarter results after market close on Thursday.
Netflix arrives at a relative bargain, considering the mountains of original content it regularly produces in addition to providing evergreen favorites like Friends, The Office, The Walking Dead, and so much more.