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BREAKING NEWS: Netflix Raising Prices By Nearly 20% to $13 a Month

Netflix announced that it will soon roll out the largest price increase in the company’s history. This is the first time that the price increase will affect all 58 million U.S. subscribers.

Right now, Netflix offers three plans: basic, standard, and premium. The basic plan, which allows consumers to watch on one screen at a time in Standard Definition, will increase from $8 to $9 per month. The most popular standard plan, which comes with the capability to watch Netflix on two screens at a time in HD, will see the largest price increase, from $11 to $13 per month. The premium option, where users can watch on 4 screens at once, will increase from $14 to $16 per month.

These new prices will go into effect immediately for new subscribers, and existing U.S. customers will see the price change over the next three months. Subscribers in Latin America billed in U.S. currency will face the price change over the same period, except for Mexico and Brazil.

This is the fourth time Netflix has raised prices, but it will affect the largest numbers of subscribers yet. Previously, as other plans became more expensive, Netflix maintained the basic $8 monthly plan. Now, price increases are across the board, although only by $1 per month on the lowest level plan.

Netflix is raising prices to cover the costs of original shows and films. The extra revenue will also help with the major debt Netflix took on in recent years to compete with rivals like Amazon and Disney.

With the price increase, Netflix’s most popular plan is now more expensive than Hulu’s Ad-Free Plan ($12), while matching that of Amazon Prime ($13), which also comes with standard Prime shipping benefits. While the company contends their entry price is cheaper, most subscribers will now pay close to the price of HBO ($15).

In their statement, Netflix said “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience.”

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