Oh no! Netflix is raising its prices

Tammy Harvey
October 8, 2017

In order to set themselves apart from the competition, streaming services like Netflix are heavily investing in original content.

Netflix Inc's USA business announced the first rises in monthly fees in two years on Thursday, hiking costs for two of its three main subscription plans as it spends heavily on its own original content.

The standard service, which includes streaming on up to two screens at the same time, is increasing from $9.99 a month to $10.99 a month.

Pricing for the basic single-stream plan will remain unchanged at $7.99 per month.

"Media companies becoming more stringent on where content is licensed and rising content costs in the peak TV era could also explain the price increase".

The price increases come after Netflix this year already raised prices in Australia, Brazil and Canada. The spokesperson added that Netflix would begin to notify members of the change on October 19.

New customers, however, have to pay the inflated fees right now.

"We would expect mgmt. would be unlikely to implement such a price increase if USA subscriber trends were disappointing, bolstering our confidence further". Stay tuned with us for more details on the Netflix price hike.

Where the Premium plan used to cost users £8.99 a month, it is now priced at £9.99 a month. The company is banking much of its future on original programming, and has said it will spend $6 billion in this year alone to acquire and produce original and exclusive programs. This would be a $1 increase.

The company has not been shy about needing increasingly more cash to fund its content goals and continue to drive growth. In order to limit its losses, Netflix timed its price hike perfectly to coincide with a flood of new content.

It's understandable that people would be upset over price increases, but these probably aren't the last ones that consumers will have to deal with.

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