Netflix will soon increase prices as streaming outlet continues to thrive
Oct 06 2017
In November, Netflix will raise prices for US premium subscribers for the first time since 2014.
Subscribers will pay $1 more a month, or $10.99 for a mid-tier plan, while the price on the high-end plan goes up from $11.99 a month to $13.99 a month.
Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading.
The basic single-screen streaming service will remain at $7.99. Anyone signing up for the service now will reportedly see the new prices. Netflix will notify existing subscribers by October 19 when the price will go up and will give at least 30 days notice before the new bill will need to be paid.
A price incresase for a popular service is hardly unheard of, and Netflix has gone through price increases in the past. Netflix's 4K streaming plan, which provides higher-quality content, will cost $14 per month, a $2 increase.
The change announced Thursday affects most of Netflix's 53 million US subscribers.
As the streaming platform expands its original production budget from $6 billion to $7 billion, it's turning out consumer pockets to make up the difference. Netflix said the price change will "roll out to members over the course of the next several months".
Netflix last hiked prices in 2014, which similarly was attributed to increased TV show and movie offerings.
RBC Capital Markets analyst Mark Mahaney believes Netflix's programming line-up is so compelling that the service could charge even higher prices and still retain most of its audience.
Many Netflix subscribers across the United States are going to be a little lighter in the wallet starting next month.
Apparently banking on fans' appetite for another 1980s Hollywood nostalgia trip, Netflix has decided now is the time for a price bump.
But some were ok with the increase, and thought it was worth it for all the shows and movies Netflix has to offer.