Netflix announced its biggest ever price increase since it launched its streaming service 12-years-ago. Its most popular plan will now cost $13, the company said Tuesday.
Raising Prices to Invest in Content
Netflix announced price rises of between 13% and 18%. Its most popular plan will now cost $13 per month, up from $11 per month. Its basic plan will become $9 per month instead of $8, and its ultra-HD premium plan will rise from $14 per month to $16 per month.
The company has raised prices 4 times previously but this is the largest rise since it launched its streaming service 12 years ago. The most recent price increase was in October 2017. It said it was making the move to in order to continue investing in high-quality content.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members,” the company said in a statement (via Associated Press).
The price will be applied to customers in the U.S. It will begin with new customers and then be rolled-out to existing ones over the next 3 months. Customers in around 40 Latin America countries where Netflix bills in U.S. dollars will also be hit with higher prices. However, key international markets such as Mexico and Brazil will be exempted.
Wall Street Welcomes News
Wall Street responded well to the announcement. Shares in Netflix were up 6% in early trading at the time of this writing (via CNBC).