Netflix Is Raising Prices Again: What You Need To Know

HBO CEO Throws a Punch – Slams Netflix's Library of Original Content, “More is not better, only better is better”

HBO CEO Throws a Punch – Slams Netflix's Library of Original Content, “More is not better, only better is better”

The Netflix price increase will have subscribers to two of the company's three packages paying more.

But Netflix subscribers have rebelled against price increases in the past, most notably in 2011 when the company stopped bundling its streaming service with its DVD-by-mail service, resulting in price increases of as much as 60 percent for customers who wanted both plans.

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 will be unaffected and will remain at $7.99, which hasn't changed since the service was established seven years ago.

The changes affect new USA members, while existing members will be alerted of the price change on October 19 ahead of their next billing cycle. It's also a comparison to other streaming services such as HBO, $14.99 per month, and Hulu, $11.99 per month.

You might notice something different on your Netflix bill starting next month. Originally, customers using the top-tier service paid $11.99 a month to stream high-resolution content on four devices simultaneously.

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Netflix NFLX, +3.64% shares were up more than 3% after the hike on Thursday.

A Netflix subscription just got a bit more expensive.

The price changes applied immediately to new customers and will roll out in the weeks ahead to current subscribers.

Netflix made the decision to increase the price of its plans in an effort to increase margins while it continues to spend billions creating hit original content such as "House of Cards" and "Stranger Things", according to the Associated Press. The company expects to spend almost $7 billion on content for its service next year, including movies, TV series and comedy specials.

Netflix and rival Amazon Prime have been pumping money into original shows to win fans and set themselves apart in an increasingly competitive bid for viewers' time.

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