Netflix Is Raising Its Prices in the United States

Netflix Inc.is raising the price of its most popular US service plan by 10 percent to $11 to help pay for the streaming giant's ambitious TV and movie budget.

A standard United Kingdom plan will rise 50p to £7.99 a month, while a premium subscription for four simultaneous users, jumps £1 to £9.99 a month.

The company also increased the monthly fee for its four-stream "family plan", from $11.99 to $13.99 per month. Meanwhile, Netflix will give current subscribers at least a 30-day notice - based on their billing cycle - before implementing the new rates.

In a statement, Netflix said the price increases were due to the service adding more original content, along with introducing new product features and improvements.

When assessing the impact of the price hike, RBC cited a proprietary survey that found 31% of respondents were on the "basic" plan, 43% were on the "standard" plan, and 26% were on the "premium" plan.

All your favourite Netflix shows are about to come at a higher price. The company will start notifying customers about the price changes starting October 19, according to Mashable. Those of you who have been subscribed to Netflix for years will remember a time when its streaming-only plan was $7.99. That's why the $9.99 plan is now the most popular plan. The price increase comes as Netflix continues to invest more money in programming, with plans to spend $6 billion in content this year.

The price increase is effective immediately for new subscribers but existing subscribers will see the price hike implemented over months. Butconsider this nugget: Netflix still has 3.7 million DVD subscribers in the USA who get their discs delivered through the mail for the same $7.99 a month it had previously cost.

Shares of Netflix are up 4.1% on the news, as investors think that consumers will willingly pay more for their Netflix fix.

  • Zachary Reyes