Netflix Raising Prices For US Subscribers Again

Miley Cyrus

Miley Cyrus

After two years without raising prices, online content provider Netflix is boosting the cost of certain subscription plans.

Netflix said it learned a lot of lessons about how to best roll out price increases after an unpopular increase was carried out in 2016.

"This price increase will likely be a revenue growth catalyst for the company", RBC Capital Markets analyst Mark Mahaney wrote in a client note.

Netflix is squeezing a bit more out of its customers. But they have increased their so-called "two-screen plan" by €1 to €10.99 and their four-screen plans by €2 to €13.99.

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According to The Associated Press, the price hikes will affect almost 53 million Netflix subscribers.

The company made a more gradual move in 2014, which did not provoke the same outrage, but the recent price hike could see it lose out to its rising competitors across Asia. Notifications will be sent out to customers October 19 with a 30-day notification to allow customers to opt-out if they want.

A Netflix spokesperson told CNN that existing users will be notified of the price changes based on their billing cycle and will get 30 days notice before the price change takes place.

Pricing for the basic single-stream plan will remain unchanged at $7.99 per month.

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Will you have to cancel your subscription? The company is banking much of its future on original programming, and has said it will spend $6 billion in this year alone to acquire and produce original and exclusive programs.

In 2011, over 800,000 subscribers in the U.S. deserted the streaming service after it dramatically increased its fees.

Back in 2015 its CEO Reed Hastings announced that Netflix would start to slowly increase subscription costs over the next decade as the company grew. The lowest price-point plan will not change.

Are you surprised that Netflix increased the price of the streaming service? So there's that, T-Mobile's Netflix On Us promotion will still be available even with Netflix's prices increasing.

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