Your Netflix Bill Is About to Get More Expensive - Again
- Author: Carlos Nash Oct 06, 2017,
Oct 06, 2017, 0:23
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.More news: French Olympic Committee allays Korea Games fears
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.