WHY YOU WILL PAY MORE FOR NETFLIX IN 2019

What happened

Netflix is raising its U.S. prices by 13 percent to 18 percent, its biggest increase since the company launched its video streaming service 12 years ago.

Its most popular plan will see the largest hike, to $13 per month from $11, on an option that offers high-definition streaming on up to two internet-connected devices simultaneously.

Why it happened

The extra cash will help to pay for Netflix’s investment in original shows and films and finance the heavy debt it has assumed to ward off rivals.

As streaming services proliferate, the competition for programming is enabling top directors, writers and actors to charge more for their talents.

What’s changing

This marks the fourth time Netflix has raised its U.S. prices, but this is the first time higher prices will hit all 58 million U.S. subscribers.

Previously, Netflix had continued to offer a basic, $8-a-month streaming plan while raising rates on more comprehensive plans. This time, the price for the cheapest plan is going up to $9 per month. A premium plan offering ultra-high definition will jump to $16 per month from $14.

The new prices will immediately affect new subscribers and then roll out to existing customers during the next three months.

Other options

Amazon offers a streaming service as part of its Prime shipping program for $13 per month, or $120 for an annual membership. Hulu sells an ad-free service for $12 per month. AT&T’s WarnerMedia unit plans a broader streaming service this year centered on HBO. Walt Disney is gearing up to launch a streaming channel this year.