Netflix has announced that its raising the prices of its U.S. subscription plans by 13-18% effective immediately, reports Variety. Existing subscribers will be moving to the new pricing "over the next few months".
The price increases will also extend to about 40 countries in Latin America where Netflix bills in U.S. dollars, including Uruguay, Barbados, and Belize. For now, Mexico and Brazil, are unaffected.
The Standard Netflix plan will increase 18% from $10.99 to $12.99 per month. The Premium plan which offers up to four Ultra HD streams is going up to $15.99 from $13.99, an increase of 14%. Finally, the Basic plan which offers a single non-HD stream, is increasing 13% from $7.99 to $8.99.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” a company spokeswoman said in a statement.
The move has sent Netflix stock soaring up. It's currently up around 6.5% to 354.60 USD. The company's content costs have ballooned and are expected to hit $13 billion in 2018. In September, Netflix reported $8.34 billion in long-term debt, up from $6.5 billion at the end of 2017. It has projected a negative cash flow of over $3 billion in 2018.
Existing Netflix members will be notified of the price increase by email and from within the Netflix app 30 days before the new prices are applied to their accounts. The exact timing will depend on your billing cycle.
Netflix currently has around 58 million U.S. subscribers.
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The price increases will also extend to about 40 countries in Latin America where Netflix bills in U.S. dollars, including Uruguay, Barbados, and Belize. For now, Mexico and Brazil, are unaffected.
The Standard Netflix plan will increase 18% from $10.99 to $12.99 per month. The Premium plan which offers up to four Ultra HD streams is going up to $15.99 from $13.99, an increase of 14%. Finally, the Basic plan which offers a single non-HD stream, is increasing 13% from $7.99 to $8.99.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” a company spokeswoman said in a statement.
The move has sent Netflix stock soaring up. It's currently up around 6.5% to 354.60 USD. The company's content costs have ballooned and are expected to hit $13 billion in 2018. In September, Netflix reported $8.34 billion in long-term debt, up from $6.5 billion at the end of 2017. It has projected a negative cash flow of over $3 billion in 2018.
Existing Netflix members will be notified of the price increase by email and from within the Netflix app 30 days before the new prices are applied to their accounts. The exact timing will depend on your billing cycle.
Netflix currently has around 58 million U.S. subscribers.
Read More