HBO is a more expensive competitor at $14.99 a month.
Netflix last raised prices in the U.S. in October 2015 when its Standard subscription went from $8.99 to $9.99 for new members. "We believe the timing of the subscription price increases is directly tied to the power of content available on Netflix this quarter", he wrote in a blog post.
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. 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. But the price increases will help Netflix continue to expand its services and improve the quality of streams for future use by consumers, as well as fund ongoing and new Netflix-exclusive projects.
Subscribers will pay $1 more a month, or $10.99 for a mid-tier plan, while the price on the high-end plan goes up from $11.99 a month to $13.99 a month. Although smaller, newer or niche services with less TV content could act as supplements to behemoths like Netflix, Hower said, it's plausible that the ecosystem for streaming video may only be able to support large, consolidated packages of content that appeals to wide audiences. Existing Netflix subs will get a 30-day notification about when their prices will go up, starting October 19. The firm plans to spend a staggering $7 billion on new shows in 2018 alone.
The increases come as the company pours more money into developing original programming.
Netflix last hiked prices in 2014, which similarly was attributed to increased TV show and movie offerings.
But some were ok with the increase, and thought it was worth it for all the shows and movies Netflix has to offer.