Netflix is raising the subscription price on its standard and premium plans in the US, the first such hikes at the streaming giant since January 2019.
The service confirmed Thursday that it is increasing the price of its HD Standard plan from $ 12.99 to $ 13.99 and its 4K Premium plan from $ 15 to $ 17.99 over the next two months. Prices are for new members today. Current subscribers must be notified 30 days prior to their price increase based on their billing cycle.
The entry plan remains fixed at $ 8.99 per month.
“We know that people have more entertainment options than ever before and we are committed to providing our members with an even better experience,” the company said in a statement. “We’re updating our prices so we can continue to offer a wider variety of TV shows and films – in addition to our great fall lineup. As always, we offer a range of plans so people can pick a price that works best for their budget. “
The shares rose about 4% in late afternoon trading after the price change news was released.
The possibility of a price hike was spread among Netflix analyst circles. In September, Jefferies’ Alex Giaimo noted a shift between management’s comments on the first quarter earnings call in April and the second quarter call in July. He said increasing from $ 1 to $ 2 per month in North America or Europe could generate revenue of $ 500 million to $ 1 billion in fiscal 2021.
In January 2019, Netflix increased its subscription prices by 13% to 18%. This is the highest figure since streaming video began more than a decade ago. These increases took effect immediately for new subscribers and were gradual for existing subscribers over more than three months.