Netflix said the increase is for new members in the US, and it plans to start letting current members know about increases on October 19, at least 30 days before they can expect to see an increase. However, customers who pay for the "Standard" plan that allows viewers to watch Netflix shows on two screens at once will increase from $9.99 to $10.99 a month, while subscribers on Netflix's "Premium" plan will pay $13.99 a month.
Following Netflix's price increases in the second and third quarters of 2016, when most US subs on the two-stream plan saw their monthly rate increase $2 per month to $9.99, overall churn "was noticeable but still modest relative to the size of the price increase", UBS's Mitchelson noted.
Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading. The basic plan will remain at $7.99. Netflix told Mashable that it occasionally raises prices in order to add more content and features to the platform.
Netflix last hiked prices in 2014, which similarly was attributed to increased TV show and movie offerings.
Saudi King Salman makes historic visit to Russian Federation
Moreover, Russia's Energy Minister Alexander Novak has said that Libya is also expected to join the OPEC deal. King Salman left Riyadh on Wednesday for an official visit to Russian Federation .
Netflix NFLX has been investing heavily in original and exclusive access to content, pushing its costs ever higher. The firm plans to spend a staggering $7 billion on new shows in 2018 alone. With more than 50 million subscribers in the US and 100 million customers worldwide, Netflix is already beating USA cable subscription totals (48 million).
If you are enjoying your Netflix account, you will soon be paying a little bit more to keep doing so. Hulu pricing on content without commercials costs $11.99 per month.
IBD'S TAKE: Netflix stock has an IBD Composite Rating of 88, meaning it has outperformed 88% of stocks in key metrics over the past 12 months.
Shares of the Silicon Valley-based company jumped more than four percent to $192.44 (R 2633.76) in trading following news of the relatively small price hike.