Netflix's cheapest subscription plan, that was previously $8-per-month, will now cost $9-per-month. The standard Netflix plan that offers two HD streams, is increasing from $10.99 to $12.99 per month. The streaming service last cranked prices in in late 2017, but the time has inevitably arrived for this to happen again.
Netflix will start charging the increased rates immediately for new subscribers. An additional 40 countries in Latin America that bill in US dollars will also see increases. Netflix has raised subscription prices four times since it launched streaming, yet the company has never had much difficulty growing its customer base.
In a statement from the company, Netflix said they "change pricing from time to time as we continue investing in great entertainment and improving overall Netflix performance".
Today Netflix announced that it will raise the cost of the streaming service across several plans, and the market is rising because of it. But this is the first time that higher prices will hit all 58 million US subscribers, the number Netflix reported at the end of September. The company's stock soared in response to the price increase news.
Wall Street responded well to the announcement.
Given the amount of quality new content appearing every other month on Netflix, this new price increase will have very little effect in Netflix's customer growth. Disney is also set to launch its Disney+ service later this year. The company, which operates virtually around the world except China, didn't specify any plan for increases in other big markets in Europe or Asia. "Our deep dive into content investments and the film strategy suggest Netflix is approaching a profit inflection", analysts at Raymond James wrote on Friday, upgrading the rating on Netflix stock to a "strong buy". It said it was making the move to in order to continue investing in high-quality content.
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