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Your Netflix Subscription Price Is About to Increase

Your Netflix Subscription Price Is About to Increase

The price changes applied immediately to new customers and will roll out in the weeks ahead to current subscribers. And the premium tier will cost $13.99 rather than $11.99.

Despite the increased expense, Netflix remains competitive with streaming rivals.

Many Netflix subscribers across the United States are going to be a little lighter in the wallet starting next month.

Netflix has increased the price on two of its three subscription tiers.

The most popular Netflix plan, which supports high-definition video and allows simultaneous streaming to two screens, was raised a dollar a month to $10.99.




A basic plan that offers streaming to a single screen will remain $7.99 monthly in the US. This is the logic that prevents some consumers from ditching cable: At a certain point, the cost of an internet plan plus various streaming services equals the price of the traditional TV bundle, or at least is competitive enough that it's mostly a wash.

For now, analysts don't see terribly anxious, nor do investors, with Netflix's share price gaining 4.3% to $192.34 in recent market action.

RBC Capital Markets analyst Mark Mahaney believes Netflix's programming line-up is so compelling that the service could charge even higher prices and still retain most of its audience. The change will roll out to existing USA members "over the course of the next several months", Netflix said.

On Thursday, Mashable reported that Netflix will be raising the prices of its middle- and highest-tier plans for the USA by $1 and $2 respectively. Earlier this year the company announced it was deep in debt, partially from the money the company spent producing original content. The company has committed $15.7 billion to streaming content deals - with $6 billion earmarked for 2017 alone.

But some were ok with the increase, and thought it was worth it for all the shows and movies Netflix has to offer.

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