Streaming giant Netflix said Thursday that it is raising the prices of its standard and premium plans for US consumers.
Now, subscribers of Netflix’s most popular standard plan, priced at $12.99 a month, will fork over a buck more, paying $13.99 a month. Premium subscribers will shell out $17.99 a month, up from $15.99.
The company said new subscribers who sign up for the plans as of Oct. 29 will pay the higher prices immediately. Current subscribers will see the new pricing over the next few months and will be notified via email and in the app.
Wall Street cheered the news, sending shares up 3.7 percent to $504.21 at the end of trading.
The Los Gatos, Calif.-based company last raised its subscription fees in January 2019. Prior to then, the basic, standard and premium plans were available for $8, $11 and $14, each.
News of the increases come after Netflix reported a slowing of subscriber additions in the third quarter after seeing record first-half growth. On the company’s earnings call last week, chief operating officer Greg Peters hinted that a price increase was imminent.
He said if Netflix continues to invest in great original content and deliver more value that the company feels like “there is that opportunity to occasionally go back and then ask for members, where we’ve delivered that extra value in those countries, to pay a little bit more.”
Regarding Thursday’s price hikes, a company rep said: “We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members. 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 line up. As always we offer a range of plans so that people can pick a price that works best for their budget.”