Netflix is raising its prices again, and the news sent the company's stock up 6.5 percent Tuesday. Netflix's cheapest basic plan will cost $9, up from $8; its most popular HD standard plan will cost $13, up from $11; and its 4K premium plan will cost $16, up from $14. The rate hikes constitute a jump of between 13 and 18 percent — the company's biggest increase since launching its streaming service 12 years ago — and will take effect immediately for new customers. Existing subscribers will see the price increase on their bills over the next three months. Customers in Latin American, the Caribbean and some other countries will also see the higher rates. Major international markets like Mexico and Brazil won't be affected. Netflix was the best performing of the so-called FAANG stocks last year, gaining nearly 40 percent in 2018 and outpacing Facebook, Amazon, Apple and Google's parent Alphabet. Netflix has already gained 30 percent in the first few weeks of 2019. Separately Tuesday, analysts at Goldman Sachs projected a strong earnings update from Netflix when it reports fourth-quarter results on Thursday. The firm is projecting a 20 percent upside for the company's stock. Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu. — The Associated Press contributed to this report.<doc-sep>Netflix’s newest US price hike could be bad news for its competitors. At $9 to $16 per month in the US, Netflix is still a bargain, considering the amount and quality of the content it’s putting out each month, analysts say. A few extra bucks a month won’t drive most people away, as long as consumers are consistently finding movies like Bird Box and series like Stranger Things that they want to watch. Last year, Netflix added nearly 1,500 hours of original programming in the US, Quartz estimated. The streaming-video giant, which boasts 139 million paying members globally, raised prices in the US this month, primarily so it could continue investing more in original programming and new technology, like the choose-your-own-adventure format showcased in Black Mirror‘s “Bandersnatch.” “Consumers have more stomach for the price of Netflix changing because of what is provided,” Brice Clinton, senior engineer at media software and services firm CSG told Quartz. “That price hike is really being used to create more original programming, and invest in larger shows… versus just putting money in shareholder’s pockets.” The timing was also telling. Later this year, media heavyweights like Disney and WarnerMedia will be launching new subscription-video services in the US. Netflix got in ahead of those services, grabbing a larger share consumers’s wallets. The price increase could also make people rethink how much they’re willing to spend on Netflix’s competitors each month, experts say. On average, people in the US are willing to pay around $38 per month for subscription streaming-video services, consumer research firm Magid found in a 2018 survey. After the $13 per month Netflix’s standard plan now costs, that leaves around $25 for other streaming services, like HBO Now ($15), Hulu ($8), or ESPN+ ($5). Netflix’s lift could make people reevaluate what subscriptions they truly value. When new platforms like Disney+ and WarnerMedia’s service hit the market, people will also have to ask themselves whether they’re willing to give up another platform or dig deeper into their pockets each month. “By raising their monthly fee, Netflix has just taken a larger share of the total notional spend, arguably putting greater pressure on others to claim and hold onto their share of what remains,” Mike Bloxham, senior vice president of global media and entertainment at Magid, said in a statement to Quartz. “It’s possible that the ripple effect of Netflix increasing its fees will be that some consumers end their subscriptions to other services.” Amazon is probably the company least at risk, because it’s more than just a video subscription. Many people subscribe to Amazon Prime for free shipping, shopping discounts, and other exclusive Prime perks besides video. But other platforms, and upcoming entrants like WarnerMedia’s tiered-service, which launches later this year, may be forced to reconsider what they can charge for their platforms. Disney has already said it plans to charge less for Disney+ than Netflix does, as it will launch with a smaller library focused on Disney brands like Marvel, Star Wars, and Pixar. Want a better understanding Netflix and other streaming giants? Check out our guide to the streaming-TV wars.<doc-sep>Netflix is raising prices. Given how much it has been spending on content, the move isn’t surprising, but the latest jump — anywhere from 13 to 18 percent depending on the subscription plan — is the biggest increase since Netflix started its streaming service a dozen years ago. That’s going to hurt some consumers. Many of its users pay for the service even if they don’t consistently watch its content, partly because of its attractive pricing. A bare-bones subscription, for instance, had cost $8 a month. But fee increases at Netflix are inevitable. One of reasons: Netflix burns a lot of cash. The company’s appetite for content means it has to spend big, resulting in what’s known as negative free cash flow. More money is going out the door than coming in, a difference that Netflix covers by borrowing even more. “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 announcing the changes, which apply just to United States customers.<doc-sep>
Netflix has announced that it will again be raising its prices for its streaming video plans. We saw the last price hike in October of 2017, and the latest jump is the biggest since the company’s launch. These changes come ahead of Apple launching its own video streaming service as soon as March. In 2017, Netflix raised the prices on two of its three streaming plans. The middle tier went from $9.99 to $10.99, while the top tier jumped from $11.99 to $13.99, an increase of 10% and 16%, respectively. Reported by CNBC, today’s news is that the same plans will now go from $10.99 to $12.99 and $13.99 to $15.99. That’s a roughly 18% jump for the middle tier plan, and a 14% hike for the premium plan. A Netflix spokesperson shared the following statement with us about the news: We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members. All of this is more interesting in light of Netflix ending the option for customers to pay for the service through Apple/iTunes which means the company won’t have to pay Apple a 30% cut on subscriptions going forward. Between the plan price hikes and cutting out Apple as a middle-man, Netflix could see a healthy boost to its revenue for 2019. Further, these Netflix changes come as Apple is set to launch its own streaming service as soon as March with the original content it has been working on over the last months. Netflix is expected to use the extra revenue to help with its large debts that it has amassed as it tries to fight off the competition: The extra cash will help to pay for Netflix’s huge investment in original shows and films and finance the heavy debt it has assumed to ward off rivals such as Amazon, Disney and AT&T. The market likes the latest changes from Netflix on plan pricing, the company’s stock is up over 6% at the time of writing. Check out 9to5Mac on YouTube for more Apple news: FTC: We use income earning auto affiliate links. More. Check out 9to5Mac on YouTube for more Apple news: