If you want to keep enjoying your favorite series on Netflix, you should get ready to pay more. Regular viewers of House of Cards or Stranger Things will soon have lighter pockets. Netflix has announced that it will be increasing prices on two of its video-streaming options.
Netflix has announced that one of its most popular plans will go up in price from $9.99 per month to $10.99 per month. The plan allows parallel streaming on two connected devices, like an iPad or Roku set-top box. The other plan allows parallel streaming on up to four devices simultaneously, including a 4K Ultra HD video, and it is increasing from $11.99 to $13.99.
Netflix has disclosed that it will start sending out email notifications to users soon, and customers will be given 30 days to accept the new prices, reduce to a lower plan, or cancel their services. This is the first time that Netflix has raised its pricing in the last two years.
The price hike was expected, considering Netflix has plans to invest $6 billion to produce original and exclusive programs.
Michael Pachter, who covers Netflix for Wedbush Securities, stated that the price hike is only limited to the United States, and that the company expects to earn over $700 million as a result of this change. Pachter asserted that most users won’t notice the price hike. Since Netflix has been ethical in notifying its users about the price changes, most users are expected to comply with the change.