The streaming service increased its prices in early 2019.
Netflix is increasing the price of its standard and premium plans.
Netflix's standard HD subscription price will increase from $ 12.99 per month to $ 13.99 per month, while the price of its 4K premium subscription will increase from $ 15.99 to $ 17.99, the company said on Thursday with. The changes will not affect the basic plan of the $ 8.99 streaming service that does not include HD streaming.
The last price increases for the streaming service were in January 2019.
The price changes took effect on Thursday for new subscribers. Current Netflix customers will be notified by email and will receive a notification within the app 30 days before their price increase. The timing is based on the subscriber's billing cycle and will be rolled out over the next two months.
"We know that people have more entertainment options than ever before, and we are committed to providing our members with an even better experience," a Netflix spokesperson said in a statement. “We're updating our prices so we can continue to offer more TV shows and films – in addition to our great fall lineup. As always, we offer a range of plans so people can choose a price that works best for their budget. "
Wall Street received the news amiably; Netflix stock surged around 5 percent in the hours following the news of price hikes. The price changes were announced a few days after Netflix released Q3 results, which narrowly missed its forecast for new subscribers. Third quarter results aside, Netflix has outperformed many of its streaming competitors since the pandemic began to disrupt the entertainment industry and the streaming service saw a sharp increase in subscribers earlier in the year.
Time will tell how the price increases of the streaming service affect the subscriber base. The streaming service attributed its 2019 price increases to slower membership growth in the US during its earnings report for the third quarter of 2019.
A standard Netflix subscription costs more than standard subscriptions to most competing streaming services on the market. The notable exception is WarnerMedia's HBO Max, launched in May, which costs $ 14.99 per month and is suffering from slow consumer adoption.