“Netflix and chill” will cost a little bit more.
Netflix has raised the prices of its standard service to $9.99, a one dollar increase from its previous rate.
The move comes about a year and a half after a similar hike that increased the fee from $7.99 to $8.99. New subscribers will have to start paying $9.99 out of the gate. Current subscribers will get a bit of time before the new pricing kicks in.
Customers that joined Netflix after May 2014 will see their prices go up in October 2016. Members that joined before May 2014 and received a price guarantee will not have a price increase until at least May 2016.
Bloomberg Business first reported the price hike, based on a report from a source familiar with the plan. The change only affects customers in the U.S. and Canada, along with some of Latin America.
Wall Street immediately applauded the deal, sending Netflix shares up sharply after the news broke. The company’s stock is now trading 5.5% higher on the day.
“To continue adding more TV shows and movies including many Netflix original titles, we are modestly raising the price for some new members in the U.S., Canada and Latin America. As a thank you to existing Netflix members — who aren’t already benefiting from a previous price guarantee — we will maintain their current price for a year,” the spokeswoman said in an email to Mashable.
The company’s website appeared to have already been updated with the new price and a spokeswoman confirmed the move.
Netflix currently has more than 42 million U.S. subscribers and another 23 million annually. The company also just recently raised prices in Europe, where it’s actually a bit pricier.
Bringing in more money from its subscribers will help offset some of the $5 billion that Netflix has said it plans to spend on programming in 2016, with a decent chunk of that going to its original content that already includes House of Cards and Orang is the New Black.
Netflix’s $9.99 monthly service now means the standard package runs $119.88 per years, more expensive than Hulu ($7.99 per month/$95.88 per year) and Amazon Prime ($8.25 per month/$99 per year) but cheaper than HBO Now ($14.99 per month/$179.88 per year).
Reactions were mixed between those that felt slighted by the increase and others who noted that Netflix might still be underpriced.
When Netflix raises its subscription fees. pic.twitter.com/2HV77o0RhV
— Mike Wehner (@MikeWehner) October 8, 2015
My favorite thing about Netflix raising its prices is that it’s still like $20 a month less than I would pay for Netflix
— David Pierce (@pierce) October 8, 2015
I’ll be in the minority, but I’m ok with Netflix pay increase. I feel like streaming media is in a race to the bottom situation.
— Frank S. (@frank_spin) October 8, 2015
In other news, how am I supposed to Netflix & chill when Netflix keeps raising their prices…? LOSING MONEY IS NOT CHILL
— Jenna Amatulli (@ohheyjenna) October 8, 2015
Source: Mashable
