Netflix Is Doing Another Price Hike, Unfortunately

The Netflix price increase will have subscribers to two of the company's three packages paying more.

The basic service, which enables Netflix streaming on once screen and doesn't allow for HD or ultra HD viewing, will remain at $7.99.

Subscribers who get the standard plan, however, will see their bill go from $9.99 to $10.99 per month.

Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading.


Netflix plans to roll out the price increase in November for existing subscribers and is set to publicly announce the price increase to customers later this month. Subscribers to the lowest, $7.99 plan will not see an increase in price, according to Mashable's report.

The price hikes will only be in the US and will start in November, depending on users' billing cycles, technology website Mashable reported.

The "Premium" plan, which allows for four simultaneous streams and 4K content, will jump to $13.99 from $11.99.

Netflix rolled out a price increase a year ago and there was much investor worry about potential sub declines. Netflix told Mashable that it occasionally raises prices in order to add more content and features to the platform.


When the bulk of that process happened a year ago, media and public chatter rose to such a degree that Netflix blamed it for a missed quarter of subscriber growth.

The $1 or $2 increase may not be much to you, but that adds up quickly for a company with a potential subscriber total over 100 million beyond North America.

UBS maintains its "buy" rating on Netflix, with a 12-month price target of $225 per share. This is the logic that prevents some consumers from ditching cable: At a certain point, the cost of an internet plan plus various streaming services equals the price of the traditional TV bundle, or at least is competitive enough that it's mostly a wash. Our detailed survey work over the years has indicated the content, not price, is the leading churn/churn-back factor amongst Netflix subs.



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