Netflix is raising its prices starting this month : Netflix will raise prices for its US subscribers starting Thursday, the company confirmed to Business Insider.
The price of the lowest-tier plan will not change from $7.99 monthly. But the most popular, the “standard plan,” which allows HD and two simultaneous streams, will increase to $10.99 a month from $9.99.
The highest-tier plan, which supports features like 4K video resolution and four simultaneous streams, will increase to $13.99 a month from $11.99.
Netflix is raising its prices starting this month
Mashable first reported the price increase.
New subscribers will see the price increase go into effect on Thursday. Current subscribers will start being notified on October 19, and it will take effect in their next billing cycle.
Netflix’s price increases always spark drama.
In October 2015, Netflix raised its prices for new members and then embarked on a process of “un-grandfathering” existing customers into new prices. When the bulk of that process happened last year, media and public chatter rose to such a degree that Netflix blamed it for a missed quarter of subscriber growth.
In a report this summer, UBS analysts found that an average pay-TV package cost over three times as much per hour of viewing as Netflix. The per-hour cost of traditional packages was about $0.42, while that of Netflix was about $0.10.
That lead is not likely to be hurt too much by a $1 or $2 price increase.
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