Netflix is bumping prices on all streaming plans

Netflix is bumping prices on all streaming plans

Netflix is one of the world's most popular streaming services and is harnessed by users across the globe.

The AP reports that the basic $8-per-month streaming plan will be raised to $9. The standard Netflix plan that offers two HD streams, is increasing from $10.99 to $12.99 per month.

But this is the largest increase on its most popular plan since Netflix started.

United Kingdom prices have not changed, but subscribers in some countries outside the U.S. can also expect increases.

Netflix has long aggravated financial watchers with its eye-popping budgets despite its persistently low subscription price.

"We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience", a Netflix spokesperson told PCMag. However, its stock still trades at hundreds of dollars per share, and the price went up 6.5 percent on the news of Netflix's higher subscription prices.

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The streaming service, which counts 58 million subscribers in the United States and has shaken up the traditional model for both television and movie studios, is confident that subscribers will not shy from increased prices. In fact, last quarter Netflix said its subscriber pool has grown by 10.7% year over year, and it now sits at 58 million subscribers in the USA and 78 million internationally.

New members will be signing up at the new rates immediately, and existing members will see their bills rise progressively over the "next few months", Netflix said. According to the Associated Press, prices for all users will increase from 13 to 18 percent and take effect in the coming months.

The money will help pay for the company's massive investment in content. If this strategy backfires it'll trigger a monumental meltdown, but thus far Wall Street is bullish on Netflix's prospects. The service most recently raised rates in October 2017, an event that was also accompanied by a bounce in NFLX stock.

Consumers also have an increasing array of other streaming options.

Netflix will use the incremental cash to finance its growing portfolio of original content and to better manage its debt load.

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