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08 October 2017, 01:05 | Melanie Burgess
Netflix is raising its prices for US subscribers
However, there is a way to avoid paying more for Netflix...
Netflix has again raised the monthly price of its most popular streaming plan in the USA, with the two-stream HD tier now $10.99 per month for new subscribers - while existing customers will be moved to the new rate over the next several months.
The streaming giant's "standard" (which includes high-definition streaming and two concurrent streams to devices) plan - as of October 5 for new subscribers October 19 for current subscribers - increases from $9.99 per month to $10.99 per month.
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Netflix has just announced that they're raising the price of their middle and top-tier streaming plans while their basic plan will stay the same.
However, even though the company has been gradually increasing spending over the last few years, this is the first price increase since 2015 when the standard plan jumped from $7.99 to $9.99. New customers will pay the higher cost starting today. "The price change will roll out to members over the course of the next several months".
Mitchelson said the price increases represent a roughly 10% effective increase to ARPU. Investment will rise from around $1 billion to some $7 billion, according to Netflix CEO Ted Sarandos, in a recent interview with Variety. Without support from advertisements, Netflix needs the price hike to help defray the cost of producing this content. The middle plan, called the "Standard" plan, allows subscribers to watch content in HD on up to 2 screens at a time.
Analysts at Jefferies expect the price increase to drive a mid- to high single digit percent impact on domestic revenue, but said content investment could offset whatever benefit to overall profitability.
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