This marks the first major Netflix price increase since 2015 when the company announced a $1 increase in subscription costs. The "premium" plan with four simultaneous streams and UHD/4K quality will go from $12 to $14.
The basic plan allows you to stream on only one device at a time in standard definition.
The price change will roll out to USA members over the course of the next several months, according to Netflix.
The price increase is effective immediately for new subscribers but existing subscribers will see the price hike implemented over months.
"We would expect [Netflix management] would be unlikely to implement such a price increase if USA subscriber trends were disappointing, bolstering our confidence further" that subscriber cancellations will be minimal, Mitchelson wrote in a research note.
The Standard plan is now $9.99 a month and come November, that amount will jump to $11.99 a month. The company which has about 53 million subscribers, last raised prices two years ago. That said, Hulu and Netflix are still cheaper than the $15 monthly price tag on HBO accounts. The previously priced $9.99 plan will increase to $10.99 and the premium tier will increase from $11.99 to $13.99, according to Mashable.
Most of the subscriber growth came from outside the USA, where Netflix has invested heavily in establishing itself as a global television service.
In a release, Netflix cited their increased production of original content as to why they needed to up their subscription rates. If you go out to lunch at the same place every week and pay $10 for your meal but all of a sudden your meal costs $11, you're going to wonder why it's more expensive.
A more gradual move in 2014 did not provoke the same outrage. It bought the streaming rights to The Good Place, for example, guaranteeing a second season, and it has deals in place with the CW for its shows.
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