Netflix Announces Largest Price Increase in Company History
Streaming giant Netflix is poised to again raise prices, this time by anywhere from 13 to 18 percent according to Fox News.
When the change takes effect, it will be the largest increase since the company launched its streaming service 12 years ago.
The price hike, which is slated to affect all 58 million United States subscribers, is the first to be implemented across all subscription types.
Netflix raises prices for U.S. subscribers https://t.co/9JWjIyv5Uk pic.twitter.com/gMCKQ3pXJD
— Reuters Top News (@Reuters) January 15, 2019
According to Fox News, the most popular plan, which currently cost $11 a month, will go up to $13 a month and still offer high-definition streaming on up to two devices simultaneously.
The price is still a little less expensive than other streaming services, such as HBO at $15 per month, but is considerably higher than Hulu’s basic $8 per month plan.
The company’s cheapest plan, which was previously $8 per month, is going up to $9 per month, and the premium plan is going up from $14 to $16, according to The Associated Press.
This is the fourth price increase that Netflix has implemented, the last of which was put into place near the end of 2017.
2017’s increase, however, did not apply to every member package available in the United States.
Following the announcement of the price increase, the AP reported that Netflix shares were up six percent in midday trading.
Netflix shares soar after raising U.S. prices https://t.co/vLVofegKTa via @ReutersTV pic.twitter.com/n3FhyfcARb
— Reuters Top News (@Reuters) January 15, 2019
While new subscribers are subject to the new pricing immediately, it will go into effect for current U.S. subscribers over the next three months.
Along with the United States, 40 Latin American countries where Netflix subscribers are billed in U.S. currency will also be affected, with the exception of Mexico and Brazil, according to the AP.
The increase in price is said to be the result of a need for cash to fund their original shows and films.
Netflix raises prices $1 to $2 to pay for original content https://t.co/rCVS6PIzfj
— The Washington Post (@washingtonpost) January 15, 2019
The company said in a statement, according to the AP, “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience.”
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