The online streaming giant is raising its prices for its 58 million US subscribers.
Matt Rourke / AP
Starting today, Netflix is raising prices for its 58 million US subscribers in what will be the biggest price hike since the streaming service’s launch 12 years ago.
The price of its most popular plan — the 2S plan that includes high-definition quality — is increasing from $10.99 to $12.99 per month, while its basic plan is increasing from $7.99 to $8.99. Its premium 4S plan that includes ultra high-definition quality is increasing from $13.99 to $15.99.
In comparison, HBO Now’s basic plan is $14.99 compared to Netflix’s $8.99 while Hulu charges $11.99 for its subscription without ads.
This is the second time in less than 15 months that the streaming giant has increased its subscription rates, with a previous hike in October 2017.
These changes will be applied to all existing subscribers over the next few months, and to all new Netflix members immediately.
Existing customers will be notified by email and the Netflix app 30 days before the new prices are applied to their subscription.
The increased prices will also apply to Netflix customers in Latin America and the Caribbean, but excludes customers in Mexico and Brazil.
In a statement provided to BuzzFeed News, a Netflix spokesperson said, “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members.”
The hike comes as Netflix is set to lose all its Disney content as Disney introduces its own video-streaming platform this year.
The influx of money will also help pay for Netflix’s heavy investments in original shows and movies to compete with rival streaming services like Disney’s new platform and Amazon Prime.