Nothing lasts forever, and that includes the monthly rate for streaming Netflix. Today, the popular streaming service has announced that the price of its HDTV tier, which allows for two simultaneous streams, is going up by one dollar per month, from $9.99 to $10.99. Furthermore, the price of the premium four-stream family plan that includes 4K and HDR content on Netflix goes up by two bucks, jumping from $11.99 to $13.99 per month.
The news of the price hikes made Wall Street analysts happy, the stock set a new record high today, and is up by 4%. Industry consensus appears to be that the price hike, which went into affect today but will be rolled out to existing customers starting October 19, is a necessity in order for Netflix to continue to compete with the likes of Amazon and HBO in a contest to create the most compelling original content.
Notably, the basic plan that only offers standard definition streaming on one device remains at $7.99 per month. Unlike past price increases, there won’t be an extended grace period for existing customers. Rather, when current subscribers receive an email notification of the increase, they will have 30 days to decide to accept it, change plans, or cancel.