Many Netflix subscribers are about to get a bigger monthly bill.
The streaming service sent emails this week to U.S. subscribers about a price increase that starts in their next billing cycle. It’s an increase some Netflix customers have already seen.
Netflix announced the price hikes in January, and said at the time that the increased revenue would help it add more television shows and movies. The company has been rolling out the price increases over the last few months, based on billing cycles.
The email to subscribers is a reminder that each of Netflix’s plans in the United States will increase between $1 to $2. The price of the basic plan will rise from $8 to $9 per month, the standard plan that includes HD streaming on two devices will go from $11 to $13 per month, and the price of its premium plan will increase from $14 to $16.
Netflix has been investing heavily in original content. It budgeted $8 billion for new shows and movies in 2018, the company announced when it reported third-quarter earnings in 2017.
Its investments paid off in terms of awards. The streaming service took home three Academy Awards, including Best Director for its film “Roma” in February. Netflix also won 23 total Emmys for shows including “The Crown,” “Stranger Things” and “GLOW” in 2018. Netflix tied for the most Emmy wins last year with HBO, which previously held the record.
Investors initially rewarded the company for increasing prices. The stock jumped 6 percent after the January announcement and has been trading mostly higher ever since.
Members who joined after the increase was revealed already have been paying the higher prices. Analysts told CNN Business that most existing customers are willing to pay more as long as Netflix continues to provide a wide range of popular content.
Netflix will also face several new competitors in 2019.
Apple recently unveiled TV+, its own streaming service that will feature original content, including two docu-series from Oprah Winfrey and a drama that stars Reese Witherspoon, Jennifer Aniston, and Steve Carell. That service doesn’t yet have a release date. Disney, NBCUniversal and WarnerMedia, CNN’s parent company, all plan to launch streaming services this year, too.
By Taylor Nicole Rogers
