The price hike goes into effect for new members in the USA today.
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.
Here's a helpful screenshot that shows all the different Netflix plans and features.
The company's mid-range plan, which allows streaming on two devices at the same time, was increased to $10.99 per month from $9.99.
"We believe that this price increase will likely be a revenue growth catalyst for the company", RBC analysts led by Mark Mahaney wrote in a note Thursday.
Netflix had 48.4 million global streaming accounts when it announced that it would be increasing its original rate of $7.99 for its most popular plan three years ago. A plan that limits subscribers to one screen at a time without high-definition will remain at $8 a month. If the company misses its Q3 targets, the news of the share price increase (which won't be reflected in this quarter's earnings) is unlikely to stave off a big drop.
The premium tier is what you need if you want to stream content in 4K UHD and watch on up to four screens simultaneously.
It's getting a little more expensive for video buffs to Netflix (NASDAQ: NFLX) and chill. Existing Netflix subs will get a 30-day notification about when their prices will go up, starting October 19. The price of Netflix's basic plan will stay the same at $7.99 per month. The company is banking much of its future on original programming, and has said it will spend $6 billion in this year alone to acquire and produce original and exclusive programs.
"We would expect [Netflix management] would be unlikely to implement such a price increase if USA subscriber trends were disappointing, bolstering our confidence further" that subscriber cancellations will be minimal, Mitchelson wrote in a research note. I have too much living to do [before I get married].
The new prices will go into effect in the U.S.in November, depending on each individual user's billing cycle. New users will receive their first month free and subscribers can cancel at any time.