Netflix is raising the cost of subscriptions again

by Luis Castro October 6, 2017, 0:25
Netflix is raising the cost of subscriptions again

Netflix is going to be increasing the membership fee for some of the more popular streaming plans available to customers by one dollar, which means a year of Netflix the way you are now enjoying it may cost you an extra $12 to $24 a year.

Netflix's standard plan, which lets users watch video on two screens at once, is rising from $9.99 a month to $10.99 a month.

Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading.

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Netflix believes its price rate is justified by recent service improvements, such as a feature that allows people to download shows onto phones or other devices to watch them offline.

Mashable reports that the price increase will begin in November. Its 4K streaming plan is also getting an increase to $13.99, up $2 from $11.99.

A price incresase for a popular service is hardly unheard of, and Netflix has gone through price increases in the past.

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Netflix has treaded lightly with price increases since 2011, when it suddenly hiked prices 60% for streaming and DVD-by-mail subscribers. The company is raising prices for customers with the "Standard" and "Premium" service packages, Mashable reported Thursday.

Speaking to Gizmodo, a Netflix spokesperson cited more original and interactive content as reasons for the shift.

Most of the subscriber growth came from outside the United States, where Netflix has invested heavily in establishing itself as a global television service. The firm plans to spend a staggering $7 billion on new shows in 2018 alone. Netflix's subscriber base has steadily grown over the years and in June, after surpassing the 50 million subscriber mark in the U.S. Hulu pricing on content without commercials costs $11.99 per month.

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Netflix did not immediately respond to a Fortune request for comment on the price hike. One way to do that is by fleshing out its service, adding content and features, and then charging more in exchange - which appears to be exactly what Netflix is doing.

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