Sorry, consumers — but a price hike is something that Wall Street has wanted for a while at Netflix.
The company’s web site shows today that it raised the monthly price for its Standard streaming service by $1 to $9.99 for new subscribers in the U.S., Canada, and some Latin American countries.
Netflix says that it’s “modestly raising the price” so it can “continue adding more TV shows and movies including many Netflix original titles.” It adds that “As a thank you to existing Netflix members — who aren’t already benefiting from a previous price guarantee — we will maintain their current price for a year.”
The change only affects the Standard service, which enables users to stream HD programming simultaneously to two screens. It does not affect the Basic service ($7.99 a month for standard definition to one screen) or the Premium service ($11.99 for HD to four screens, and Ultra HD when it’s available).
Netflix’s last price increase, of $1, came in May 2014. Prior to that it hadn’s raised prices since 2011.
The news reversed an intraday skid in the stock price, which is now up more than 2% from yesterday’s close.
Netflix may need the additional cash from consumers to help pay for its growing programming outlays. Its obligations grew 58% over the last two years while revenues increased 54%, Macquarie Research’s Tim Nollen noted in mid-September.