Netflix Stock Breaks Out As Internet TV Network Reveals Price Hikes

Posted October 05, 2017

Netflix is upping its prices. The price of the basic plan, which allows for one screen and SD viewing, remains unchanged at $8 per month.

A standard United Kingdom plan will rise 50p to £7.99 a month, while a premium subscription for four simultaneous users, jumps £1 to £9.99 a month.

The highest tier plan (four screens and ultra-high definition streaming) will increase $2 per month. That's an increase of a single dollar from the current $9.99 monthly rate. The company is raising prices for customers with the "Standard" and "Premium" service packages, Mashable reported Thursday.

Netflix last raised prices in 2014.

Netflix has seen its subscriber base continue to grow in 2017.

The increases come as the company pours more money into developing original programming.

The last time prices increased for the streaming services was in 2014 and the process took almost two years to roll out to all customers. Netflix will release more than 200 of its own pieces this year, ranging from TV shows and movies to documentaries and stand-up specials.

Netflix has rapidly become the center of most of our TV universes, streaming everything from utterly obscene coming-of-age cartoons to original stand-up comedy.

When responding to a tweet about the price hike on Thursday, Netflix said users will get an email on or after October 19 informing them of the the new price.

Despite major investment and growing subscriber numbers, Netflix's price hike is probably being caused by the site's insane content budget. Think again. It will soon cost more for new and exiting customers to stream their favorite shows like Stranger Things and Master on None on Netflix. Crunching the numbers, RBC estimated that the price increase would lead to about $650 million more in incremental domestic revenue in 2018.