Netflix on Tuesday announced that it is raising prices for all customers within the U.S. Its most popular plan, which goes for $11 a month, will now be $13, the biggest price hike it has enacted since launching in 2006.
The last time Netflix raised prices was back in 2017, which saw the base price rise $1 from $10 to $11. The newest price hike signifies a hefty 18-percent increase for its 58 million U.S. subscribers. Netflix says the price hike is necessary to create more appealing content for all of its customers.
Here’s how Netflix’ new pricing for all of its plans will look like:
- Basic plan: $8 > $9 (HD streaming on one device at a time)
- Standard plan: $11 > $13 (HD streaming on two devices at a time)
- Premium plan: $14 > $16 (Ultra HD streaming on four devices at a time)
Netflix has sent some customers an email saying the price hike will take effect February 15. Even though price hikes are never welcome, with the increased competition in the streaming segment, it was bound to happen at some point. Netflix is continually spending millions of dollars every year to create original content and that is now being passed on to its customers.
That original content is growing increasingly more important as many companies are creating their own streaming services. There’s Netflix, Hulu, Amazon Prime Video, but there’s more options from NBC and Disney on the way.
And even with the price hike, Netflix’s standard plan is still cheaper than other options like HBO, which costs $15 per month. That’s just the price of doing business right now for streaming companies as original content continues to grow in importance.