Netflix is raising their prices next month
SAN DIEGO (KUSI) – Netflix subscribers are about to get a bigger monthly bill.
The streaming service sent emails this week to US subscribers about a price increase that starts in their next billing cycle.
Netflix (NFLX) announced the price hikes in January, and said the increased revenue will help the streaming service add more television shows and movies.
The email to subscribers is a reminder that each of Netflix’s plans in the United States will increase between $1 to $2. The price of the basic plan will rise from $8 to $9 per month, the standard plan that includes HD streaming on two devices will go from $11 to $13 per month, and the price of its premium plan will increase from $14 to $16.
Netflix has been investing heavily in original content. It budgeted $8 billion for new shows and movies in 2018, the company announced when it reported third quarter earnings in 2017.
Its investments paid off in terms of awards. The streaming service took home three Academy Awards, including Best Director for its film “Roma” in February. Netflix also won 23 total Emmys for shows including “The Crown,” “Stranger Things” and “GLOW” in 2018. Netflix tied for the most Emmy wins last year with HBO, which previously held the record.
Investors initially rewarded the company for increasing prices. The stock jumped 6% after the January announcement and has been trading mostly higher ever since.
Members who joined after the increase was revealed already have been paying the higher prices. Analysts told CNN Business that most existing customers are willing to pay more as long as Netflix continues to provide a wide range of popular content.
Netflix will also face several new competitors in 2019.
Apple recently unveiled TV+, its own streaming service that will feature original content, including two docu-series from Oprah Winfrey and a drama that stars Reese Witherspoon, Jennifer Aniston and Steve Carell. That service doesn’t yet have a release date. Disney, NBCUniversal and WarnerMedia, CNN’s parent company, all plan to launch streaming services this year, too.
CNN Business’ Jill Disis and Frank Pallotta contributed to this story.
Correction: A previous version of this story misstated the price increase for Netflix’s premium subscription.