Mobile's Netflix On Us will cover today's price hike "for now"
- Author: Marlene Weaver Jan 16, 2019,
Jan 16, 2019, 0:36
The cheapest plan will now cost $9 per month. Under the new pricing plans, each sees an increase of $1 to $2 per month.
Netflix will start charging the increased rates immediately for new subscribers. Existing subscribers will be see the price increase on their bills over the next three months.
Those countries include countries in Latin America and the Caribbean such as Uruguay, Barbados and Belize, where the firm also sets prices in dollars.
Netflix increased the prices of all three of its United States plans on Tuesday, some by as much as 18%, which makes this the most substantial price jump since the streaming service debuted in 2007.
Shares in the company jumped more than 5% on the news.
Netflix (NFLX) stock has seen a tremendous amount of growth in the a year ago and the new price announcement doesn't seem to have dampened that at all. According to the Associated Press, prices for all users will increase from 13 to 18 percent and take effect in the coming months.
This will impact the existing 58 million U.S. users and any future subscribers. The Premium plan, which provides up to four Ultra HD streams, is increasing from $13.99 to $15.99 per month (up 14.3%).
Wall Street analysts have believed Netflix has demonstrable leeway to safely raise fees without the risk of significant backlash. It's also the first price increase on the company's basic plan. Walt Disney is gearing up to launch a streaming channel this year.
Netflix's previous subscription increase in 2017 did little to slow growth, as Netflix added 24 million customers that year. The service most recently raised rates in October 2017, an event that was also accompanied by a bounce in NFLX stock. "Our job is to focus on, invest in providing our members incredible experiences, more great content, and great product experiences", said Chief Product Officer Greg Peters.