Netflix users will be paying a bit more beginning this May if they want to remain subscribed. The streaming service has begun sending emails to U.S. subscribers about a price increase that goes into effect in their next billing cycle.
This should perhaps come as no surprise, as Netflix has imposed many price hikes in years past. This, however, marks its biggest increase to date — the basic plans will rise from $8 to $9 per month, the standard plan that includes HD streaming for two devices will go from $11 to $13, and the premium plan will increase from $14 to $16.
Netflix Price Hike Effective May
Netflix announced the price increase back in January, saying at the time that the increased revenue would help the service produce and add more films and TV shows. That makes sense, as it's probably not cheap to produce budget-heavy shows the likes of Stranger Things, Black Mirror, Our Planet, and many others. Besides original content, that money also goes to acquiring licenses for non-Netflix shows, including Friends.
The company, as CNN notes, has been rolling out the new pricing scheme over the last few months, based on billing cycles. New users have already been paying the higher prices since Netflix made the announcement, however.
Here's How Much Netflix Spends For Content
Netflix paid $12 billion on content last year and is expected to spend $15 billion this year. Fortunately for the streaming service, its investments paid off, at least in terms of awards. Netflix recently took home three Oscar trophies for Alfonso Cuaron's Roma. It also nabbed 23 Emmys for shows such as The Crown, Stranger Things, and Glow last year, tying with HBO for the most Emmy wins in a single year.
Netflix is poised to face new competitors beginning sometime this year, namely Apple TV+ and Disney+. NBCUniversal and WarnerMedia both plan to launch their own streaming services this year, too. Apple and Disney will also release their own original content. Make sure to check back with Tech Times as we learn more.