Netflix is Raising Its Prices


It will soon cost you a little more to watch Netflix originals like Fuller House and Stranger Things.

That's because the internet-based TV company is raising the prices on two of its video-streaming options. The price of Netflix's basic plan will stay the same at $7.99 per month. That plan allows for simultaneous streaming and HD viewing on two internet-connected devices such as an iPad and a Roku set-top box.

The premium tier is what you need if you want to stream content in 4K UHD and watch on up to four screens simultaneously. The company will start notifying customers about the price changes starting October 19, according to Mashable.

The price increase for new customers in the USA became effective on Thursday.

Netflix's "content prowess" gave it the pricing power to raise prices, according BTIG Research's Rich Greenfield, sooner than the analyst expected.

Wedbush Securities analyst Michael Pachter believes less than 10 percent of current subscribers will cancel Netflix as prices rise again, but he predicts it will be tougher to attract new customers who will choose Amazon's cheaper alternative.

"This morning we woke up to the news of another senseless shooting - this time in Las Vegas", Fallon said.

"The reason why that's the best thing that's ever happened to me in my life is that's when I realized my power", she told Stern about the 2013 VMAs.

Netflix has also had a mixed history of price increases.

If subscribers hate price hikes, as Netflix CEO Reed Hastings said previous year on an earnings call, why is Wall Street smiling? And then, during her visit to The Tonight Show on Wednesday night, Jimmy Fallon temporarily vacated his desk so that the show's female writers-plus special week-long guest Miley Cyrus-could write her a series of heartfelt thank-you notes. "That's when I realized my power", she said.

Yes, the Bronx princess who was hustling for money just a few years ago is signed to a major label and holding the belt for the most popular song in America over the likes of Demi Lovato and Taylor Swift.

The company in July reported that subscribers grew in the second quarter of this year to 103.95 million.

Netflix stock closed at $194.39 per share, up 5.4% for the day and an all-time high.