Netflix is increasing the price of its standard and premium plans.
The price for Netflix’s HD standard subscription is increasing from $12.99 per month to $13.99 per month, while its 4K premium subscription price is going up from $15.99 to $17.99, the company announced on Thursday. The streaming service’s basic $8.99 plan, which does not include HD streaming, is unaffected by the changes.
The streaming service’s last price hikes were in January 2019.
The price changes took effect on Thursday for new subscribers. Current Netflix customers will be notified through email and will also receive a notification within the app 30 days ahead of their price increase. Timing will be based on the specific subscriber’s billing cycle and will be rolled out over the course of the next two months.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a Netflix spokesperson said in a statement. “We’re updating our prices so that we can continue to offer more variety of TV shows and films – in addition to our great fall lineup. As always we offer a range of plans so that people can pick a price that works best for their budget.”
Wall Street took kindly to the news; Netflix’s stock went up around 5 percent in the hours after the price hike news broke. The price changes were announced several days after Netflix reported its Q3 earnings, where the company narrowly missed its projection for new subscribers. The mixed Q3 earnings aside, Netflix has fared better than many of its streaming competitors since the pandemic began disrupting the entertainment industry and the streaming service enjoyed large subscriber increases earlier in the year.
Time will tell how the streaming service’s price hikes will impact its subscriber base. The streaming service blamed its 2019 price hikes on slower membership growth in the United States during its Q3 earnings report in 2019.
A standard Netflix subscription costs more than the standard subscriptions for most competing streaming services on the market, the notable exception being WarnerMedia’s HBO Max, which launched in May, costs $14.99 per month and has suffered from slow consumer adoption.