Netflix Has Just Raised The Price Of Its Subscriptions Again

Ivan Schwartz
October 8, 2017

Netflix's most expensive option allows users to stream different shows on four screens in 4K.

Netflix the online TV and film streaming service have raised their prices for its service in the United Kingdom and the U.S. for the first time in two years. The standard Netflix plan that offers HD viewing on up to two devices simultaneously will now cost $10.99 a month, $1 up from its previous cost of $9.99.

The price hike arrives as Netflix continues to increase production of original TV and movie content.

UBS analyst Doug Mitchelson said the timing of the price increase coincides with what his firm expects will be a strong fourth quarter content slate that could help minimize churn.

Just past year, Netflix hiked the member rate for the standard HD plan to $9.99, a whole dollar increase from $8.99. Notifications will be sent out to customers October 19 with a 30-day notification to allow customers to opt-out if they want.

New customers, however, have to pay the inflated fees right now.

Tourists Pay Tribute to Las Vegas Victims
58 white crosses set up behind the "Welcome to Las Vegas" sign on the Strip to memorialize those who died in Sunday night's #LVShooting .

Las Vegas massacre: Donald Trump invites survivors to the White House
Presidential spokeswoman Sarah Huckabee Sanders told reporters Thursday that "we're certainly open to having that conversation". President Trump hailed the injured individuals' heroism for attempting to save others despite being in danger themselves.

Saudi king to make historic visit to Russian Federation
Russia , like Iran, is also a key partner of the Syrian government of President Bashar al-Assad, who Saudi Arabia has opposed. The king is also set to met Prime Minister Dmitry Medvedev on Friday before leaving Russian Federation on Saturday.

Pachter thinks Netflix's price increases would be more likely to dissuade potential new subscribers, and that Amazon and Hulu may draw those customers to their services instead.

Mitchelson said the price increases represent a roughly 10% effective increase to ARPU.

It was only a year ago that Netflix also increased their standard HD plan $8.99 a month to $9.99 a month. Canadian subscribers experienced a subscription price hike earlier this year.

Netflix has raised the price on its standard and premium streaming service subscriptions.

According to Business Insider, the lowest-tier plan will remain unchanged. This made a lot of people ask whether or not this would effect T-Mobile's Netflix On Us promotion and, it doesn't.

The price increase also comes 11 days before Netflix is scheduled to report its third-quarter results.

Other reports by GizPress

Discuss This Article