Netflix has announced it’s increasing the price of all three of its subscription tiers. According to the company, the basic plan which doesn’t include HD streaming will cost $9 a month (up from $8), the HD plan will cost $13 a month (up from $11), and the 4K plan will now run you $16 a month (up from $14). All 58 million U.S. subscribers will see today’s price hikes over the coming months as Netflix rolls out the updated costs.
No one likes paying more money for something, so you’re probably reading this asking yourself, “Why, Netflix?” As it turns out, it all has to do with original programming. To keep itself relevant among the ever-growing streaming industry, Netflix needs to invest in more original content like region-specific movies and TV shows. That way, it can draw people to subscribe to its service over competitors like Hulu, Disney, and NBC who will introduce its own streaming service in 2020. It obviously costs a ton of money in order to do this, so the formal DVD rental service needs to drive up its subscription costs in order to cover the funding it wants to pour into its original content.
“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 to the Associated Press.
So if you check your credit card statement this month and find your recurring Netflix payment is higher than normal, don’t freak out.