Netflix is about to get a bit pricier, as the company announced plans to raise the monthly subscription price for its standard plan.
Back in late August, Netflix spiked the prices in Europe and now the company is doing the same for new customers in the U.S., Canada and some parts of Latin America. Netflix enjoys global popularity as the world's top paid online video streaming service, boasting more than 65 million subscribers worldwide.
As Bloomberg first reported, Netflix is raising the price of its standard subscription to $9.99 per month, up $1 from the previous price. Existing customers will be able to enjoy the $8.99 rate a little longer, but the price increase is effective immediately for new customers.
As previously mentioned, this price increase applies to the standard plan, which allows two viewers to use the same subscription simultaneously. The other plans allowing for one viewer at a time or four viewers at a time remain unchanged, retaining their previous pricing. This means that the basic plan with access to one screen will still cost $7.99 per month, while the premium plan with access to four screens will remain at $11.99 per month.
The new price hike is part of Netflix's wider efforts to expand its original programming.
"The dollar increase for new members is to help us bring more great content, original and licensed, to the service," Netflix wrote in reply to one commenter on Twitter.
Netflix further confirmed the price increase in a statement to TechCrunch, explaining its decision and offering more details on the grace period for existing subscribers.
"To continue adding more TV shows and movies including many Netflix original titles, we are modestly raising the price for some new members in the U.S., Canada and Latin America," Netflix told TechCrunch.
"As a thank you to existing Netflix members - who aren't already benefiting from a previous price guarantee - we will maintain their current price for a year."
Netflix has yet to send official notifications to its subscribers, alerting them of the price increase, but is expected to do so shortly. Those who want to sign up for the service from now on, meanwhile, will have to shell out $9.99 for the standard, two-screen plan.
