Netflix will raise its prices for its U.S. subscribers, the company announced last week.
The $9.99-a-month plan, which allows you to stream on two devices at the same time, will jump to $10.99 a month.
The $11.99-a-month plan, which gives you four streams, will jump to $13.99.
The entry-level plan for new users will remain at $7.99.
Price hikes have already gone into effect for new subscribers.
For current subscribers, changes will take effect in November.
From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster, Netflix said in a statement, according to ReCode.
Netflix has recently doubled down on its original content, investing $6 billion into shows like House of Cards and Stranger Things and feature films and TV shows, CNBC reported.
In response, big studios like Fox have worked to reclaim their old shows from Netflix. Fox in particular has chosen to stream its shows only on Hulu or Fox-related apps, according to Recode. CBS announced it would produce episodes for a new Star Trek show, which will only air on a CBS app. And Disney, which has plenty of films on the service, plans to take its movies and shows onto its own platform in 2019.
But demand still remains high from Netflix customers, which means this wont be the final time we see a price change for Netflix, according to USA Today.
The company can still make price increases without losing much business, experts told USA Today.
"Netflix has a lot of headroom for price increases," said Michael Greeson, president and principal analyst for research firm The Diffusion Group, to USA Today. "The service offers tremendous value even at the higher, but still very low, monthly costs."
Netflixs decision to raise prices may help other streaming services, too, USA Today reported.
For example, Hulu, which started as a free service, now costs $7.99 with commercials or $11.99 without commercials.
Amazon Prime costs $99 a year, with a separate $8.99-a-month plan just for Amazon Prime video.
This "gives permission to other (streaming) providers to consider price increases. Of course, their economics and user base will vary, but I think Amazon Prime and Hulu subscribers could tolerate a small price increase just about as well as Netflix, Greeson told USA Today.
The $9.99-a-month plan, which allows you to stream on two devices at the same time, will jump to $10.99 a month.
The $11.99-a-month plan, which gives you four streams, will jump to $13.99.
The entry-level plan for new users will remain at $7.99.
Price hikes have already gone into effect for new subscribers.
For current subscribers, changes will take effect in November.
From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster, Netflix said in a statement, according to ReCode.
Netflix has recently doubled down on its original content, investing $6 billion into shows like House of Cards and Stranger Things and feature films and TV shows, CNBC reported.
In response, big studios like Fox have worked to reclaim their old shows from Netflix. Fox in particular has chosen to stream its shows only on Hulu or Fox-related apps, according to Recode. CBS announced it would produce episodes for a new Star Trek show, which will only air on a CBS app. And Disney, which has plenty of films on the service, plans to take its movies and shows onto its own platform in 2019.
But demand still remains high from Netflix customers, which means this wont be the final time we see a price change for Netflix, according to USA Today.
The company can still make price increases without losing much business, experts told USA Today.
"Netflix has a lot of headroom for price increases," said Michael Greeson, president and principal analyst for research firm The Diffusion Group, to USA Today. "The service offers tremendous value even at the higher, but still very low, monthly costs."
Netflixs decision to raise prices may help other streaming services, too, USA Today reported.
For example, Hulu, which started as a free service, now costs $7.99 with commercials or $11.99 without commercials.
Amazon Prime costs $99 a year, with a separate $8.99-a-month plan just for Amazon Prime video.
This "gives permission to other (streaming) providers to consider price increases. Of course, their economics and user base will vary, but I think Amazon Prime and Hulu subscribers could tolerate a small price increase just about as well as Netflix, Greeson told USA Today.