Netflix raised membership prices on Tuesday with a 13- to 18-percent rate increase.
The basic plan will jump from $8 to $9, while its HD standard plan will rise from $11 to $13. The 4K premium plan—the priciest of the Netflix subscriptions—will rise from $14 to $16.
The subscription rates will take effect immediately for new customers. However, rates for existing members of the streaming service will rise within the next three months.
Subscribers in Latin America, the Caribbean, and some other countries will also have to fork over more cash for their binge watching. However, those in major international markets, such as Mexico and Brazil, won’t have increased bills.
Netflix’s stock jumped 6.5 percent on Tuesday thanks to the subscription cost increase. As the service’s fourth membership increase, it’s the largest since the service launched in 1998. Netflix raised its rates in October 2017, causing shares to jump 3 percent.
While some customers might be annoyed, Netflix plans to produce more original shows and movies, and to finance its debt with the extra cash. Hopefully, this means we’re getting more Stranger Things–style content and less Death Note-esque flops.
Within the past few days, Netflix gained new competition from NBCUniversal and IMDb. NBCUniversal announced plans yesterday to launch a free streaming service in early 2020 to paid TV subscribers in the U.S. and major international markets. IMDb debuted its own video-streaming channel Freedive with movies and TV shows last Thursday.
Photo: Tech Crunch