Netflix, Inc. (NFLX) Is Officially Raising Prices In The US
08 October, 2017, 01:05
It's the first price hike for those countries in two-years and comes as the online TV streaming business plans to expand its production output.
Here's the scoop: New users will face a $10.99 monthly subscription fee, as opposed to the usual $9.99 rate. The company said that by the end of the year it will have spent around $6 billion for original content in 2017.
That's down 17 percent from a year ago, and is much smaller than Netflix's nearly 52 million domestic streaming subscribers, but it's still sizable. Over the pond in the US, American streamers will also see a bump in pricing to $11 and $14 a month on standard and premium respectively, a $1 increase.
Luckily, the price hike won't affect most Netflix subscribers and it's quite a small increase for those affected.
Netflix said it will start sending out notifications by email to its subscribers beginning October 19.
The price changes will roll out to USA members over the course of the next several months, according to Netflix.
The US-based streaming network said it will raise the price of a standard United Kingdom plan 50p to £7.99 per month and the premium plan by £1 to £9.99 per month.
Will you have to cancel your subscription? It makes sense, however, as Netflix is continuing to produce original content. Ted Sarandos of Netflix claims that by next year they intend to spend at least $7 billion on original programming. In 2011, they offered a DVD and streaming service for under $10.
The price changes applied immediately to new customers and will roll out in the weeks ahead to current subscribers.
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.
In your account settings, go to the section that says Change Plan: the direct link is here.
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