Your Netflix Subscription Price Is About to Increase

Marcus Newton
October 6, 2017

The company's stock is up 2.69% to about $189.53 on Thursday, following the news that Netflix will be increasing the price of its subscription services to help cover its increasing content production budget. The basic plan, meanwhile, which only offers standard definition on one screen, will remain $7.99.

Last year, Netflix raised its standard HD plan to $9.99 per month, up from $8.99.

The price increase for new customers in the USA became effective on Thursday. It plans to raise the prices for existing subscribers from October 19. Premium tier pricing will increase from $11.99 to $13.99.

Netflix has rapidly become the center of most of our TV universes, streaming everything from utterly obscene coming-of-age cartoons to original stand-up comedy.

Netflix is raising its prices for the first time in two years.

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Reported by Mashable, Netflix will be raising its standard plan from $9.99 to $10.99 and its premium plan will go from $11.99 to $13.99 for US customers. CEO Ted Sarandos said earlier this year that Netflix plans to spend $7 billion on original content in 2018.

According to USA Today, the service's most popular plan will now cost $10.99 cents a month.

"People don't like price increases, we know that", CEO Reed Hastings said on an earnings call past year.

Stranger Things avoiding a sophomore slump in it's much- anticipated second season wouldn't hurt either. The company added that, since its last price increase in October 2015, Netflix has added a downloading feature and interactive content.

Wedbush Securities analyst Michael Pachter believes less than 10 percent of current subscribers will cancel Netflix as prices rise again, but he predicts it will be tougher to attract new customers who will choose Amazon's cheaper alternative.

Other reports by MaliBehiribAe

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