Bad news for Netflix subscribers — the streaming service is upping its monthly fee across its various plans after raising them previously in late 2017.
Netflix originally announced its price increases back in January, but reminded subscribers about the hikes in an email sent out to its user base this week.
Price increases have already begun rolling out to some subscribers over the past few months, dependent on the timing of their billing cycles.
If you haven’t seen a price hike yet, here’s how much more you’ll stand to pay on future billing cycles broken down by plan.
- The basic plan will be bumped up from $8 a month to $9 a month.
- The standard plan, which allows for two simultaneous HD streams will go from $11 a month to $13 a month.
- The premium plan, which comes with four HD streams, will increase from $14 a month to $16 a month.
It’s worth noting that users who signed up for Netflix after the January announcement are already paying the increased monthly fee. Customers with existing subscriptions won’t be grandfathered at their current price.
Netflix Faces Stiff Competition
But Netflix is likely facing the heat from a newly announced Apple streaming service. Unlike services like Hulu, which actually dropped its monthly fee to $5.99 a month, Netflix seems to be taking a different strategy — namely, pumping more money into content to attract new subscribers and keep current ones.
The streaming platform says that the increase in revenue will allow it to keep adding more original and third-party television shows and films. Last year, Netflix set aside $8 billion for new content.
That strategy has proved to be successful. Netflix burns through a lot of cash to keep its content offerings current. Back in January, the firm committed to spending $18.6 billion on content, The New York Times reported.
But despite the content spending, Netflix actually isn’t losing money. The NYT reports that the firm actually claims a profit every quarter because entertainment firms are allowed to record production and licensing costs later than usual.
Apple’s first-party streaming service, dubbed Apple TV+, has no firm release date or pricing data. But the first slate of original TV content should debut sometime this year.
The Cupertino tech giant isn’t the only company wanting to get in on the streaming market. Disney, NBCUniversal and WarnerMedia all have plans to launch their own streaming services this year, too.