It will start emailing notifications about the new prices to affected subscribers October 19, giving them 30 days to accept the higher rates, switch to a cheaper plan or cancel the service. But the mid-priced Netflix option enabling streaming on two devices at once has gone up to $10.99 from $9.99 a month, and the highest-end subscription, with high-definition streaming on up to four devices, is now $13.99, up from $11.99.
Netflix has treaded lightly with price increases since 2011, when it suddenly hiked prices 60% for streaming and DVD-by-mail subscribers.
If you are enjoying your Netflix account, you will soon be paying a little bit more to keep doing so.
Netflix is raising the price for its most popular US video streaming plan by 10 percent - a move aimed at bringing in more money to outbid HBO, Amazon and other rivals for addictive shows such as "Stranger Things". Subscribers to the lowest, $7.99 plan will not see an increase in price, according to Mashable's report.
For now, analysts don't see terribly anxious, nor do investors, with Netflix's share price gaining 4.3% to $192.34 in recent market action.
The price hikes will only be in the United States and will start taking effect from mid-November, depending on users' billing cycles. Next year, Netflix will likely spend $7 billion, chief content officer Ted Sarandos said earlier this week at a Vanity Fair entertainment conference in Los Angeles. Our detailed survey work over the years has indicated the content, not price, is the leading churn/churn-back factor amongst Netflix subs.
While Netflix's pricing will now be higher, the company's streaming service is still cheaper than many of its competitors, including HBO Now, which offers access exclusively to that network's content for $15 a month.
Last year, Netflix raised its standard HD plan to $9.99 per month, up from $8.99.
Netflix and rival Amazon Prime have been pumping money into original shows to win fans and set themselves apart in an increasingly competitive bid for viewers' time.