Attention Netflix user: a rise in cost to view your favorite shows is on the horizon for next month.
The popular streaming service sent their US subscribers an email this week to inform them of a price increase that will begin during their next billing cycle.
Back in January, Netflix announced future price hikes. They said the extra money would help add a greater variety of shows and movies to the streaming service for its customer.
The email specified the price changes for all of the plans Netflix offers. The basic plan is set to raise one dollar from $8 to $9 per month. Meanwhile, both the standard plan with HD streaming for up to two devices and the premium plan, are to rise by two dollars. From $11 to $13 and $14 to $16 respectively.
What Netflix has done on current cost levels
Recently, Netflix seems to be focusing a lot on original content. Last year, the company budgeted $8 billion for new shows and movies. The budget for last year announced at the same time the company released its third-quarter earnings back in 2017.
The investments did pay off in terms of awards for the company. The streaming service took three Academy Awards. “Roma” won them the award of Best Director back in February. Netflix also won 23 Emmys for shows such as “Stranger Things,” “The Crown,” and “Glow” last year. This series of victories left Netflix tied with the most Emmy wins from last year with HBO who had previously held the record.
Investors began rewarding the company for increasing their prices. Netflix’s stock rose 6% after the announcement in January and has since been mostly trading higher ever since.
Those who joined after the increase announcement began paying the higher rate immediately. Analysts talked with CNN Business saying most of the current customers are willing to pay more so long as Netflix keeps providing a wide range of popular content.
Despite the growth of Netflix, the company must contend with the new competition this year.
Apple recently announced its own streaming service TV+. This service is said to feature original content including an Oprah Winfrey docu-series, and a drama starring Reece Witherspoon, Steve Carell, and Jennifer Aniston. Though TV+ doesn’t have a release date, NBCUniversal, WarnerMedia, and Disney plan to launch their own streaming services this year.