Use Netflix? Prepare to pay more
Netflix is raising U.S. subscription prices 13 to 15 percent in the biggest rate increase in its history, the company announced Tuesday.
Although the company has raised prices in the past, this is the first increase that will be applied to all 58 million U.S. subscribers, as well as subscribers in 40 countries in Latin America where Netflix bills in U.S. dollars. The most popular subscription plan will now cost $13 a month, up from $11. The cheapest subscription will cost $8.99, up from $7.99.
The price increase will help fund Netflix’s glut of original films and shows, into which the company poured more than $12 billion in 2018, according to an assessment from Goldman Sachs.
Customers will be notified of the increase via email and through the Netflix app at least 30 days before the price increase takes effect; timing will vary depending on the customer’s billing cycle.
Netflix is already facing tough competition from other streaming services such as Amazon, Hulu and HBO, and the streaming service landscape is about to become even more crowded as AT&T and Disney both introduce streaming options later this year.
Based in Los Gatos, California, Netflix boasts more than 130 million subscribers worldwide. The company’s shares soared 6 percent in response to news of the price hike.