Netflix will be raising the price of its 4K offerings and plans to expand its content available in 4K.
Netflix is currently one of the few ways users can enjoy 4K content as 4K television displays are becoming increasingly common. The term 4K is the known industry name for ultra-high-definition television.
"We're very high on 4K, and I think 4K is around to stay," said Netflix spokesperson Cliff Edwards, saying that much more 4K content will be available starting in 2015. "It's one of those things, you can see the benefits."
The price of Netflix's premium "Action" service will be raised from $8.99 per month to $11.99 per month. It will not only allow users to enjoy 4K content, but let them access four shows simultaneously, which is perfect for a family who might have multiple devices.
Users who want to take advantage of 4K content will also need to make sure that they have an Internet speed of at least 25 megabits per second.
Netflix will not be offering all of its content in UHD. According to sources close to the company, the Netflix UHD catalog is quite a bit smaller than its standard-definition catalog. Only a handful of shows, including Breaking Bad, House of Cards 2, Smurfs 2, Ghostbusters and Ghostbusters 2 will get the treatment, although it is likely that more shows and movies will be added to the service as time goes on.
Netflix is becoming increasingly concerned about operating costs and continues to license content from major networks like CBS and NBC in an attempt to remain competitive. Not only that, but the company also pays annual fees to companies like Comcast and Verizon.
The company currently owes $7.72 billion for content streaming obligations, with $3.30 billion being due within the next 12 months.
Netflix is not the only streaming company migrating to 4K content. Amazon Studios is also starting to offer 4K for its original series, including Transparent, Hand of God and Red Oaks.
Netflix users who have used the company's 4K offerings before will also be pleased to know that they will not magically start being charged more per month. All current subscribers, up to Aug. 12, will be grandfathered into the service indefinitely.
It is expected that offering more 4K content will be very appealing for customers who have not yet signed up to Netflix and that the company will gain a large amount of additional subscribers because of higher-quality content.