Netflix's Price Hike — How Much It's Going Up & What It Means
Netflix is asking subscribers to open up their wallets once again.
The streaming service just announced that U.S. customers — all 58 million — will have their monthly prices increased by 13 percent to 18 percent. The price will jump from $11 to $13 for Netflix's most popular plan, which includes an HD feed and use of two devices, according to The AP.
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The cheapest plan will see a raise in price from $8 to $9 per month, and ultra-HD 4K subscription is going from $14 to $16. This is the biggest price spike since the company debuted its streaming service 12 years ago.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement.
This is the fourth time that Netflix has raised its U.S. prices. The last time the company increased its price was in 2017. And the increase is speculated to help pay for the streamer's huge investment in content creation.
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According to AdWeek, Netflix spent $8 billion on entertainment in 2018 and plans to spend even more this year on new content. What was once a less saturated market is now one of the most competitive, with other streaming rivals like Amazon, Hulu, Apple, DC, and Disney expanding into the content market.
In comparison, Amazon Video Prime costs $13 per month ($120 for an annual membership), and Hulu costs $12 per month.