Video streaming service Netflix is raising its prices considerably in the United States. Subscriptions become 13 to 18 percent more expensive, depending on the plan. The price increase is the largest since Netflix launched, twelve years ago.
The new pricing structure will take effect immediately for new customers, while existing subscribers will see their prices raised within the next three months. Netflix’s cheapest basic plan will cost $9, up from $8. The most popular HD standard plan will cost $13, up from $11, and Netflix’s 4K premium plan will cost $16, up from $14.
Netflix likely needs the extra cash to help pay for its huge investment in new exclusive content. The video streaming service needs to continue to invest in such content to be able to compete with similar services from Apple, Amazon, HBO and Disney. Last year, the company announced it would invest up to $13 billion in new movies and series.
It’s the fourth time ever that Netflix raises prices in the United States, the last time was in October 2017. So far, the price increases didn’t seem to hold back any new subscribers. In the third quarter of last year, more than 7 million new customers subscribed to the video streaming service.
Besides subscribers in the United States, also customers in Latin American, the Caribbean and some other countries will see the higher rates. In major international markets like Mexico and Brazil Netflix hasn’t raised prices (yet).