If you love streaming movies, documentaries or television shows over your mobile device, the price to binge watch is going up if you get your content from Netflix. The last time the streaming service had changed its Netflix plans was two years ago and it seemed about time for the company to make its plans pricier. However there is some good news, the streaming service's basic package will remain at just $7.99 per month for the time being.
"This price increase will likely be a revenue growth catalyst for the company", RBC Capital Markets analyst Mark Mahaney wrote in a client note. New subscribers are being asked to pay these prices from today (after their free trial period, that is), while existing members will be formally notified later this month before the hike kicks in this November. Shares rose 5% during intraday trade following the news and hit an intraday high during trading Friday morning, suggesting investors approve of the increase.More news: India beat Australia by nine wickets in rain-hit T20
"We would expect mgmt. would be unlikely to implement such a price increase if USA subscriber trends were disappointing, bolstering our confidence further". It's also raising the price of its four screens plan from $11.99 to $13.99. When exactly will Netflix prices start to increase? The company has been coming out with a number of interesting shows produced as original content as well as roping in other popular shows and movies. Over the next year, the company expects to spend $7 billion on original material to stream.
Netflix is hiking its prices for many of its Irish subscribers. This made a lot of people ask whether or not this would effect T-Mobile's Netflix On Us promotion and, it doesn't.More news: Gerard Pique jeered by Spain supporters after Catalonia independence referendum
In the U.S., meanwhile, the standard price plan is going up $1 and the premium package will increase by $2. The newest price hike is a 10 percent increase.More news: European Parliament criticises UK's divisions over Brexit process