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Recent headlines might make you think Netflix is raising prices, but the email received by U.S. customers this week is simply a reminder of the price increase announced in January. The streaming giant rolled out the 2019 price increase based on billing cycles over the last few months, so it’s new to some current subscribers.
The price hikes for U.S. subscribers and some Latin American countries will take effect on the next billing cycle. Consumers who signed up for a new account after the announcement in January are already paying the new amount, so they won’t see a change next cycle.
The increase will only set subscribers back another one or two bucks. Basic plan subscribers will see their cost go from $8 to $9 per month, while those with the Standard HD streaming plan will see their bill jump from $11 to $13 per month. Premium customers will now pay $16 per month, up from a previous $14.
The price hike is only the 5th since Netflix started streaming, and is relatively small considering the sheer volume of content available. Price hikes are never popular, but the rate increase funds even more quality content, and most customers are willing to pay for the added value.
Netflix justifies the $1-$2 change by pointing toward the award-winning library of original content. Last year the company earned three Academy Awards and 23 Emmys while tying HBO’s record of wins.
Netflix invested heavily in original content in 2018 and expects to expand more in 2019. In addition to funding new content, the revenue helps ward off the threat of the recently announced Apple TV+ and the widely anticipated Disney streaming service.
Emails received this week are simply reminders that customers should expect to see the price increase announced in January hit their next bill cycle. The increase is $1-$2 at the most and will fund even more award-winning content.
Megan Southard is a writer, mom, technology enthusiast, and movie junkie. She dreads the day her kids have to explain gadgets to her and is old enough to say, "I was the remote for our TV growing up."
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