Netflix announced today that it’s raising prices for new customers by 13 to 18 percent, effective immediately, according to an Associated Press article.
The price hike will be added to existing customers’ monthly bills over the next three months, Netflix says.
Netflix’s premium plan, which includes 4K programming and four simultaneous streams, will rise from $13.99 a month to $15.99 a month. The company’s standard plan, which includes two streams and high-def programming (but no 4K), will go from $10.99 a month to $12.99 a month.
The basic plan, which includes standard-def programming, will rise from $7.99 a month to $8.99 a month.
Netflix’s stock rose this morning on news of the price increase, but the decision to hike fees at arguably the most competitive time in the company’s history is risky. Hulu last year boosted its subscription total from 17 million to 25 million, largely due to low promotional prices, and Amazon Prime continues to increase its numbers thanks to the site’s merchandising power.
In addition, Apple, Disney, AT&T and Comcast are planning new streaming services this year, and channels such as HBO, Showtime and Starz now have standalone Net-based offerings.
— Phillip Swann