Netflix is raising the subscription price to its standard and premium plans in the U.S., the first such hikes at the streaming giant since January 2019.
The service confirmed Thursday that it is raising the price of its HD Standard plan to $13.99 from $12.99, and its 4K Premium plan to $17.99 from $15 over the next two months. The prices take effect today for new members, with current subscribers to be notified 30 days ahead of their price increase based on their billing cycle.
The entry-level plan remains fixed at $8.99 per month.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” the company said in statement. “We’re updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall lineup. As always we offer a range of plans so that people can pick a price that works best for their budget.”
Shares were up about 4% on the news in late-afternoon trading after the price-change news came out. They were down a tick after hours.
The possibility of a price hike has been floated around Netflix analyst circles. In September, Alex Giaimo of Jefferies noted a shift tone between remarks from management on the first-quarter earnings call in April to the second-quarter call in July. He said an increase of $1 to $2 a month in North America or Europe could generate $500 million-$1 billion in fiscal 2021 revenue.
In January 2019, Netflix raised its subscription prices by 13% to 18%, the steepest since the company began streaming video more than a decade ago. Those hikes took effect immediately for new subscribers and were phased in over three months for existing subscribers.
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