For the first time since 2015, Netflix is raising its prices for two subscription services.
Netflix is raising two of its pricing tiers for subscribers. This marks the first price increase made by the streaming company in two years. The standard tier is bumping up from $9.99 to $10.99 per month, while the premium tier is going from $11.99 to $13.99. Netflix's basic plan remains at $7.99 per month. This change only affects U.S. subscribers. Customers will be notified of the change at least 30 days in advance (based on their billing cycle), starting on October 19.
"From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improved the overall Netflix experience to help members find something great to watch even faster," a Netflix spokesperson told The Verge.
While this increase is a mere dollar or two, it will have major impacts on the company's budget. That money will add up and go towards investing in documentaries, comedy specials, and original content. Netflix chief content officer Ted Sarandos said the company has plans to spend $7 billion on content in 2018.
The shift in prices is small enough that it shouldn't cause Netflix to lose its 100 million subscribers, especially since the prices are still cheaper than its competitors. HBO Now has a $14.99 per month plan and Hulu's got a $11.99 commercial-free plan.
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