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Netflix is raising its prices for US subscribers

netflixfronttNetflix is raising two of its pricing tiers for US subscribers beginning next month.

The standard tier, which allows subscribers to watch on two screens at once, will be bumped up from $9.99 to $10.99 per month. The premium tier, which is available in Ultra HD and allows users to watch on up to four screens, will go up from $11.99 to $13.99. The Basic $7.99 per month plan will remain the same.

“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,” a Netflix spokesperson said in a statement to The Verge.

In 2015, Netflix bumped its standard tier, which is also its most popular price point, from $8.99 to $9.99. This summer, Canadian Netflix subscribers saw both the basic and standard tiers go up one dollar, to $8.99 and $10.99, respectively.

Given the huge amount of competition in streaming, small but steady price hikes for customers are basically a given. Netflix is trying to grow rapidly, and that means spending a lot of money on original content. In a recent interview with Variety, Netflix’s chief content officer Ted Sarandos said the company plans to spend around $7 billion on content in 2018, up $1 billion from its spending in 2017. Netflix also recently invested $400 million in a permanent Canadian production presence.

Hulu and Amazon each have several billion budgeted for original content as well, while the head of Amazon Studios has said the company is racing to find the next Game of Thrones.

A small price shift probably isn’t enough to deter a majority of Netflix’s 100 million subscribers, but as the streaming industry splinters into small niche services, customers have more options then ever. Still, even Netflix’s new $10.99 standard tier is cheaper than HBO Now’s $14.99 per month plan and Hulu’s $11.99 commercial-free plan.

Netflix says customers will be notified of the change based on their billing cycle, beginning on October 19th.

Source: The Verge

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