Netflix raises monthly subscription prices as streaming competition heats up

The price change will affect new customers immediately, Netflix said.

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By Minyvonne Burke

Get ready to pay a little more for your Netflix subscription.

The video-streaming company announced Tuesday that it will be raising prices for its 58 million U.S. customers.

The hike to its monthly subscription plans will hit new customers immediately, while those who already pay for one of the company's three streaming plans will see the new prices rolled out over the next three months.

The price change will affect all three plans — basic, standard and premium — but standard will see the largest hike, going from $11 per month to $13.

The price changes will also affect customers in about 40 Latin American countries, where Netflix continues to grow. As of September, there were about 79 million Netflix subscribers outside the U.S.

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The video-streaming company announced Tuesday that it will be raising prices for its 58 million U.S. customers.Elise Amendola / AP file

The standard plan, Netflix’s most popular, allows users to stream in high-definition on two screens and download videos on two phones or tablets.

The basic plan, which allows users to stream in standard definition on one screen and download videos to only one phone or tablet, will remain the cheapest, going up to $9 per month. It currently costs $8 per month.

The premium plan, which allows users to stream in high-definition and ultra high-definition on four screens, will soon cost $16 per month, instead of its current $14.

The increase in plans will help Netflix as it continues to spend on original content to build its library of movies and TV shows, which now includes “Stranger Things,” “Orange Is The New Black” and the 2018 thriller “Bird Box.”

“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement.

This is the fourth time Netflix has changed its monthly plans — and it's the biggest increase since launching its streaming service 12 years ago.

Analysts and investors have generally had a positive outlook on Netflix, making it one of the best performing stocks of the past decade. But the company has come under some scrutiny more recently over its rising debt and concerns that slowing growth and increasing competition could mean slimmer profits.

The price hike was welcomed by investors on Tuesday, with Netflix shares rising 5.9 percent in late morning trading.

The new prices for Netflix will also inch the company closer to what its competitors offer. HBO charges customers $15 per month for its streaming service, while Amazon’s Prime Video is $13 per month without a Prime membership.

Associated Press contributed.