Netflix announced the biggest price increase in the history of the streaming service today, hiking prices on all three of its United States plan tiers by between 13% and 18%. But as CBS News contributor and Wired editor-in-chief Nick Thompson reports, subscription services like Netflix don't seem to have trouble keeping customers, even after price hikes, which means they could keep coming.
Netflix announced its biggest ever price increase since it launched its streaming service 12-years-ago.
As of this latest price increase, the $8 basic plan will be $9/month, the standard two-screen option $13/month, and the premium with four screens and Ultra HD will go up to $16/month.
Most Netflix subscribers in the U.S. are on the Standard plan and therefore most will be subjected to the higher $2 per month price increase.More news: City can't afford £100m Ruben Neves, says Pep Guardiola
Netflix shares rose 6.5 percent to $354.56 in afternoon trading, adding to their 30 percent rise so far this year.
So does the higher cost of Netflix affect your view of the service?
The company's stock surged $21.70 to finish at $354.64, its highest closing price in almost three months.
In a rare move that illustrates the company's production ambitions, Netflix recently showed an original picture in theaters for several weeks before making it available online.More news: Unpaid Airport Screening Agents to Get Day’s Pay, $500 Bonus During Shutdown
It will take some time to gauge consumer reaction to the higher prices, but Wall Street is already thrilled.
"We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience", a company spokeswoman said in a statement. Some efforts, such as horror flick "Bird Box" and romantic comedy "To All the Boys I've Loved Before" have found overwhelming success, but many others have tanked.
Netflix is to raise its U.S. prices for the first time since 2017, a move created to alleviate a large, debt-fueled $13bn investment in new films, series and documentaries this year - as well-funded competitors emerge in the content streaming business. That baseline live TV package is now less than $10 more than the most expensive Netflix price plan. The higher prices apply to new subscribers immediately. It has another 79 million subscribers outside of the US.
Netflix subscribers will pay more in the U.S.More news: U.S. girl, 13, found alive three months after murder of parents
How do you feel about Netflix increasing the price of their service, yet again?