Netflix to increases prices for middle and top tier plans

Do you want more original TV series and movies fromNetflix soon? Well, the media company is willing to invest in that, even up to billions of dollars, but the drawback is that they will apparently be increasing the prices for their middle and top tier plans as part of that move. The good news for those on the basic plan is that it will remain at $7.99 per month, at least for now. Those on the other two tiers will have to bear with a $1-$2 price hike starting October 19.

Those who are currently on the $9.99 plan will now have to add one more dollar and pay $10.99 per month. The top tier previously paid only $11.99 but by October 19 or the next billing cycle after that, you will have to shell out $13.99. This increase will only happen in the US market, and there’s no news yet if they will also apply this to other markets around the globe. The features for the 3 tiers remain the same though.

The official statement from Netflix says that occasionally, they will have to adjust their prices to be able to provide quality exclusive TV shows and movies as they “improve the overall Netflix experience”. They actually have not introduced a price increase since 2014 and since then they have also introduced a lot of exclusive content. They initially planned to spend $6 billion in 2018 but now it seems they have added another 1 billion dollars to that investment.

While the basic tier users are probably happy that there is no change to their plan, Netflix will probably experience some pushback from users in the other tiers. And because there are other options for viewers out there in terms on-demand streaming, they may also experience a decline in subscribers over the next few months.

VIA: Mashable

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