Netflix Raising Prices for U.S. Subscribers This October
Netflix subscribers in the United States can expect to pay higher prices for two of its most popular plans.
The popular streaming service is raising its prices this month, according to reports. This is the first time Netflix had a price hike in two years — increasing its most popular plan's price by $1 to $10.99 monthly.
As for the premium plan, which allows users to stream Netflix content on four screens (compared with the standard plan's two) and get 4K video resolution, will be increased by $2. From $11.99, it will now be available for $13.99 per month. The price for the basic plan, which lets users stream on one screen, will stay at $7.99 monthly.
"From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster," the streaming provider said in a press statement.
While people do not like price hikes, they are necessary for Netflix as the company spends more money on developing new content for their viewers. Business Insider points out that according to Netflix content boss Ted Sarandos, the streaming giant is expected to spend around $7 billion next year.
It's also worth noting that Netflix has already made big moves these past few months. Aside from hiring TV power player Shonda Rhimes, the company also purchased comic book publisher Millarworld.
CNN reports the price change will not affect existing members yet. A Netflix spokesperson said users will be notified about the changed prices based on their billing cycle. Additionally, they will have 30-days notice before all changes take effect. Members will be notified by the streaming provider about the new prices on Oct. 19. Meanwhile, the price increase is already effective for all new subscribers in the United States.
