Netflix went years without raising prices in the U.S., but then not too long ago, the service announced a $1 increase and despite the somewhat negligible amount, people freaked out.
The basic service, which enables Netflix streaming on one screen and doesn't allow for HD or ultra HD viewing, will remain at $7.99. The standard plan will go from $9.99 to $10.99 per month and the premium plan will jump from $11.99 to $13.99 per month. The standard tier supports two continuous streams at a time and HD quality video, while the premium tier allows for up to four streams at once, along with 4K quality streaming video support.
With the subscription price increase, Netflix can definitely expect higher revenue for the third quarter, which is also a great sign for investors and its shareholders. Subscribers will be notified first. If you want these shows, then it's going to cost, and I'm just thankful that the price increase is a very modest 10 percent. Netflix intends to make customers aware of the big change on October 19 via email.
The cheapest plan will not change from the $7.99 price.
The price increase comes as Netflix continues to invest more money in programming, with plans to spend $6 billion in content this year. That plan now costs $11.99, but it will go up to $13.99 with rate increases.
U.S. Netflix Subscribers: prepare to pay a bit more for your plan.
There's no real secret behind the reasons for Netflix raising its prices. We mention Stranger Things and Longmire because they are two of the more-popular upcoming shows coming presumably this year, but there are plenty more coming on the other side of that, including net seasons of GLOW, Orange is the New Black, Luke Cage, Santa Clarita Diet, and many more. It may be no coincidence that the news comes shortly after Netflix seemingly took a mild blow when Disney chose to pull its library of Netflix items for its own streaming service. In the second quarter of 2017, Netflix added 5.2 million new subscribers-1.07 million in the USA and 4.14 million internationally-putting it way out in front of its estimated 3.2 million total subscriber adds. Unlike last time, loyal or long-time customers won't get a price freeze period.
In 2011, the company lost 800,000 USA customers in one quarter after splitting its streaming and DVD services and effectively doubling the cost for some consumers.
All your favourite Netflix shows are about to come at a higher price.