Sadly, Netflix and chilling is going to start costing a bit more this year.
In a move that will affect nearly 58 million streaming subscribers in the U.S., Netflix has just announced it will raise its subscription service cost by 13 to 18% — their biggest hike ever. While this isn't the first time Netflix has raised its prices, it is the first time a price hike will affect all U.S. Netflix subscribers.
If you’re wondering what this means for you, here's the breakdown: the cost of Netflix’s Basic plan will be bumped up by $1, from $8 to $9; their most popular plan, HD Standard, will go up by $2, to $13 from $11; and the 4K Premium plan will increase from $14 to $16. For current Netflix subscribers, the price increase will take place over the next three months. For new Netflix subscribers, these price hikes will go into effect immediately.
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No one likes when prices go up, but Netflix has accumulated substantial debt — some $5 billion — in order to compete with other rival streaming services. It’s also worth noting that the extra funds generated by these changes will go towards funding more of the Netflix originals films and TV shows that millions of users around the world have come to love.
Netflix has paid dearly for raising price in the past: In 2011, when the streaming giant unbundled its streaming service with its famed mail-order DVD service (subsequently increasing costs by as much as 60% for customers who wanted both options), Netflix lost roughly 600,000 subscribers.
As of now, however, Netflix stock is soaring following the price increase announcement. At this juncture, with millions of subscribers hooked on countless acclaimed Netflix originals — from Stranger Things to Bird Box — all around the world, it remains to be seen if there will be much backlash at all.