Netflix is getting a little bit more pricey in the U.S. — a move that’s inevitably unwelcome to subscribers but one that’s clearly pleasing Wall Street.
Shares in the streaming giant shot up 4% after it announced the hike, CNBC reports, which saw Netflix raise prices — in the U.S. — of its standard plan (which supports 1080p streaming on up to two simultaneous screens) from $13 to $14, as well as its premium plan (which supports 4K and HDR streaming quality on up to four screens) from $16 to $18. Netflix’s entry-level plan, which supports 480p streaming, will remain at $9. This marks the first time that Netflix has raised prices since Jan. 2019., which was its biggest increase to date.
While new subscribers will start paying the increased rates immediately, CNBC notes that existing customers will see the changes roll out over the next two months, with a warning arriving thirty days prior to when the changes go into effect.
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On the company’s latest earnings call, COO Greg Peters hinted that a price increase was imminent, stating that given Netflix’s huge investments in original content, “there is that opportunity to occasionally go back and then ask for members, where we’ve delivered that extra value in those countries, to pay a little bit more,” per CNBC.
In addition to the price hike, Netflix earlier this month nixed free trials across numerous regions, including the U.S., Canada (where it just raised subscription prices), and India. That said, earlier this summer, the streamer began offering select titles for free on a new hub, netflix.com/watch-free.