Netflix Raising Streaming Prices Across All Tiers In The US

Brenda Watkins
January 15, 2019

Netflix is raising its USA prices by 13 percent to 18 percent, its biggest increase since the company launched its video streaming service 12 years ago. This is the largest increase since the company launched its streaming service more than a decade ago.

Netflix now has 58 million USA subscribers, and this is the first time a price hike will impact all of them at once. The most affordable Netflix option, the "basic" plan, increases by $1, from $8 per month to $9. Netflix's premium plan, which includes HD and UHD streaming on up to four screens simultaneously, will now cost $16, up from $14 monthly. Customers in about 40 Latin American countries where Netflix uses USA currency will also be affected by the price increase. The price rise will also affect customers in around 40 Latin American countries, where Netflix charge customers in US Dollars, but will not take place in countries like Mexico and Brazil.

New pricing will soon go into effect for new subscribers and roll out to existing members over the next three months according to the Associated Press.

"We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience".

Netflix's price increases also will extend to about 40 countries in Latin America where it bills in US dollars, including Uruguay, Barbados, and Belize.

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Back in September Netflix emphasised it had a whopping 58million subscribers in the United States, the only market the change has now been announced for. Netflix has continued to invest in original programming over the past few years, going away from the licensed IP model it had towards the beginning.

Netflix will be hiking its prices again in 2019.

The money will help pay for the company's massive investment in content. It spends around $13 billion on it.

But the success of "Bird Box" has Wall Street bullish on the company. The company's stock surged 6.5 percent to $354.79 in Tuesday's early afternoon trading.

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