Netflix’s subscriber numbers are on the rise, but unfortunately subscription fees are rising with them.
A new report from Mashable claims current US subscribers of two of Netflix’s three plans will see fees increase sometime next month, with the standard and most common plan jumping from $9.99 to $10.99.
The premium plan – which offers Ultra HD 4K and the option to view shows on four screens at once – will jump in price from $11.99 to $13.99. You’ll only be spared if you subscribe to the basic $7.99 plan, which will remain the same price for now.
Viewers in the UK aren’t safe from similar increases, either, with rates for the two higher tiers going up from £7.50 to £8 and from £9 to £10, according to What Hi-Fi.
Tough break for new Stranger Things fans
If you’re a new member who planned to sign up for the new season of Stranger Things set for release on October 27, sorry, the price increases begin today.
Netflix released the following statement as an explanation:
“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster.”
There’s little doubt that Netflix hopes the price increase will help expand the streaming service’s already large offering of original content, which ranges from stand-up comedy shows to critically acclaimed series, like Stranger Things, Bojack Horseman, and Daredevil.
Earlier this year, Netflix’s chief content officer Ted Sarandos said in an interview with Variety that the company expects to spend $8 billion on original content next year, up from the $7 billion it’s spending this year.
There’s a chance that Netflix might be in for a big surprise, as it was last year when it discovered that, after the 2015 price hike, new original content offerings weren’t spurring subscriber and revenue growth quite in the way it had hoped.
Last April, though, we reported that Netflix was optimistic about its growth again, as it called its then-upcoming milestone of 100 million subscribers “a start.”
Netflix says that all current customers should receive a notice about the price increase with the upcoming billing cycle that begins in October 19. After which, you’ll have at least 30 days to decide if you want to keep your subscription.