Your Netflix Bill Is About to Get More Expensive - Again

Netflix is going to be increasing the membership fee for some of the more popular streaming plans available to customers by one dollar, which means a year of Netflix the way you are now enjoying it may cost you an extra $12 to $24 a year.

The standard service, which allows customers to stream shows and movies in HD on up to two screens at once, is now priced at $10.99 monthly, up from $9.99.

Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading.

Netflix also offers a Basic plan, which does not offer HD quality and allows just one stream at a time.

The company is scheduled to report quarterly earnings on October 16, which should offer a sense of its global drive for subscriptions as well as any sign of a ceiling for US subscription levels.

The price hikes will only be in the USA and will start in November, depending on users' billing cycles, technology website Mashable reported.

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The streaming giant last raised prices in the USA two years ago. The company is raising prices for customers with the "Standard" and "Premium" service packages, Mashable reported Thursday.

If the typical American household is only willing to spend an average of roughly $100 a month on television, then it would make sense for Netflix (or Amazon, or Hulu, or whomever) to try to capture as much of that $100 as it can.

Netflix NFLX has been investing heavily in original and exclusive access to content, pushing its costs ever higher. The company has committed $15.7 billion to streaming content deals - with $6 billion earmarked for 2017 alone.

RBC Capital Markets analyst Mark Mahaney believes Netflix's programming line-up is so compelling that the service could charge even higher prices and still retain most of its audience.

You might notice something different on your Netflix bill starting next month.

  • Carlos Nash