After two years without raising prices, online content provider Netflix is boosting the cost of certain subscription plans. That represents a 10 percent increase. This isn't the first time Netflix has increased its prices and it certainly won't be the last.
Most of the subscriber growth came from outside the USA, where Netflix has invested heavily in establishing itself as a global television service.
If you are a current Netflix subscriber, the same price increases for standard and premium plans will happen within the next few months, according Variety.
When Netflix raised prices for some customers by as much as US$6 in 2011, 800,000 U.S. subscribers to deserted the service.
Existing customers - who now pay $9.99 for the service - will be moved to the new price plan over the next several months and will be advised of the increased via email. The lower-tier plan, which allows for only SD streaming, stays where it is at $7.99 per month. The company's chief content officer Ted Sarandos recently confirmed that Netflix will spend $7 billion on content next year alone. Canadian subscribers experienced a subscription price hike earlier this year.
You'll find the screen above with three different subscription options. Back in 2011, the company saw hundreds of thousands of customers drop its service after it said it would no longer include streaming and DVD rentals in a single subscription. Netflix has already started raising the cost for new customers in the U.S. The price increase will begin for current subscribers on October 19.
In your account settings, go to the section that says Change Plan: the direct link is here. But don't think we didn't notice, Netflix. "Further, we expect less speculation this time as to what the price increase means for future content spending given 2018 has already been indicated at +$1b Y/Y", wrote Mitchelson in a research note.