How Will Netflix's Price Hikes Hit You?

How Will Netflix's Price Hikes Hit You?

Subscribers to two out of three main Netflix plans in the USA getting its monthly fee jacked up as the company lays out billions for content.

Netflix will begin sending 30-day notices of the price hikes on October 19.

The highest tier plan (four screens and ultra-high definition streaming) will increase $2 per month. The prices are already in effect for new sign-ups and will be rolling out to existing customers later this month, Netflix said.

As Internet streaming services become increasingly popular amid continuing cord-cutting, Netflix and rival streamers Amazon and Hulu are aggressively spending to acquire new series from major Hollywood and global suppliers, or produce their own original shows.

Netflix issued a brief statement, saying that pricing was adjusted to help add "more exclusive TV shows and movies" as well as introduce more product features.

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The change announced Thursday affects most of Netflix's 53 million USA subscribers.

Netflix isn't really in a position to cut costs when it comes to content creation either, as competitors like Hulu and Amazon are steadily pumping more and more money into their own original movies and shows as well. The standard tier, which allows subscribers to watch on two screens at once, will be bumped up from $9.99 to $10.99 per month. The full implementation of the new prices is expected to take several months.

The last time Netflix hiked its prices was in 2015. If you go out to lunch at the same place every week and pay $10 for your meal but all of a sudden your meal costs $11, you're going to wonder why it's more expensive.

While Netflix's subscriber count has grown-the service now has about 104 million total subscribers and is predicting the number will grow to more than 108 million during the third quarter of 2017-so too has the SVOD's booming original content budget. It bought the streaming rights to The Good Place, for example, guaranteeing a second season, and it has deals in place with the CW for its shows.