Netflix fans have a love-hate relationship with the streaming giant at times. It certainly has some fantastic original movies and series, but it also has some junk filling up the bulk of its catalog. Netflix had a gigantic budget for 2018 of $8 billion and to cover the cost of all the original programming it makes, and cover debt, Netflix is raising prices for all of its 58 million U.S. subscribers. The price increase is the biggest increase since Netflix launched its streaming service over a decade ago.
The most significant price hike will come to subscribers on its most popular plan that allows HD streaming on up to two different TVs. That plan previously cost $11 per month, and after the price increase will cost $13 per month. A hike of $2 certainly won't break the bank for most users, and even at the new higher price, Netflix is still cheaper than some competing offerings.
Subscribers are never happy about a price increase, but word of the increase has sent shares of the company up more than 6% in trading after the announcement was made. This will mark the fourth price increase that Netflix has instituted; the last hike came in 2017. The cheapest plan that Netflix offers will go from $8 monthly to $9 monthly. The most expensive of plans is the premium ultra-high definition with 4K streaming; it will climb from $14 per month to $16 per month.
Customers in 40 Latin American countries where they are billed in U.S. currency will see their prices climb to match those in the U.S. However, key international markets like Mexico and Brazil won't see their prices increase. Netflix says that the countries where prices are going up will see the new prices immediately for all new subscribers and roll out to all existing customers over the next three months.