Time to put a few more dollars aside to enjoy Netflix. Beginning in November, Netflix will raise the monthly price for its standard tier from $10 to $11, and the price of its premium tier from $12 to $14.
This will be the largest price increase for the streaming video service since 2014.
According to reports, the increase in price will only affect U.S. customers, who should start getting notifications from Netflix about the change starting October 19. Those customers affected will be given a 30-day notice about the price increase, and the change could roll out to some customers differently depending on their billing cycles.
Netflix is keeping its $8 basic tier unaffected for those that don’t mind only being able to watch standard-definition streams on one device at a time.
This will be the second adjustment Netflix has made to its subscription prices since May 2014 when it raised its standard tier’s price from $8 to $9 and ultimately introduced the aforementioned $8 basic tier. Last year, another change shifted Netflix’s monthly standard subscription price to $10. Today’s announced increase of $2 for the premium tier plan is the largest shift in subscription fees since Netflix first introduced its streaming-only option in November 2010.
The price hike likely doesn’t come as a shock to anyone following Netflix’s highly publicized growth in recent years, with the company devoting more of its resources toward developing its own original projects. In August, Netflix’s chief content officer Ted Sarandos revealed Netflix plans to spend a gargantuan $7 billion on content next year, up from the $6 billion it spent this year.
“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster,” stated Netflix in a statement regarding the price hike.
The amount of money Netflix has been dumping into content has benefited the streaming service mightily. In June, a Statista study found Netflix and its more than 50 million subscribers in the U.S. had surpassed the number of people who subscribe to cable television in the U.S. Netflix also dropped a reported $130 million on the first season of The Crown, and was rewarded with five Golden Globe and Emmy awards, including Best Television Drama series at the 74th annual Golden Globes Awards this year.
Those Netflix and chill sessions are going to be a bit pricier this fall.
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