Netflix prices to rise across all three streaming tiers

Netflix prices to rise across all three streaming tiers

Netflix prices to rise across all three streaming tiers

Netflix shares soared at Tuesday's opening bell, extending the video streaming giant's impressive January run. Finally, the premium plan offers UHD streaming when available and streaming on up to four devices at the same time, and its price is growing from $14 per month to $16.

"We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience", a Netflix spokesperson told PCMag.

Netflix just raised its prices, and the stock market is reacting quite positively to the news.

Netflix unveiled plans Tuesday to boost prices for USA subscribers, a move that helped lift shares of the streaming television giant which now faces an array of new competitors.

The new prices will immediately affect all new subscribers and then roll out to existing customers during the next three months.

Netflix's most popular plan, the Standard tier that offers two HD streams, is increasing 18%, from $10.99 to $12.99 per month. Clearly, Netflix sees its original content-shows like Stranger Things, Orange is the New Black, and The Crown as well as movies like Bird Box-as the lifeblood of the service and it wants to continue to invest heavily in it. The last time Netflix changed its prices was in late 2017, but this is the first time a price hike has ever hit every subscriber at once.

Netflix will use the extra money to help pay for licensing deals and the production of original content, neither of which are cheap. The company, which operates virtually around the world except China, didn't specify any plan for increases in other big markets in Europe or Asia.

Netflix is scheduled to report quarterly results on Thursday.

Netflix smartly raises prices a little bit at a time, so $1 here or $2 there doesn't seem too significant. If this strategy backfires it'll trigger a monumental meltdown, but thus far Wall Street is bullish on Netflix's prospects.

The price hike could prove to be an important cash infusion for the company.

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