Netflix raises its prices again for U.S. subscribers; rates jump 13 to 18 percent

“Netflix Inc is raising monthly fees for its U.S. subscribers by between 13 percent and 18 percent, the video streaming pioneer’s first price increase since 2017 as it spends heavily on original content and international expansion,” Reuters reports. “Prices for its popular standard plan, which allows streaming on two devices at the same time, will be increased to $12.99 per month from $10.99, the company said in a statement.”
“The company’s top-tier plan, which allows streaming on four screens in high definition, will be raised to $15.99 from $13.99 per month, while fee for its basic plan will rise to $8.99 from $7.99,” Reuters reports. “In comparison, Time Warner Inc’s HBO Now streaming service charges $14.99 per month, while Hulu’s no-advertisements plan is priced at $11.99 per month.”
“Netflix is scheduled to report its fourth-quarter results after market close on Thursday,” Reuters reports. “‘With Netflix frequently tapping the debt markets on several recent occasions, the price hike could help ease concerns with a growing deficit on free cash flow to fund a likely continued escalation in Netflix’s content spending, which likely topped $13 billion in 2018,’ CFRA analyst Tuna Amobi said.”
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MacDailyNews Take: The total for cord-cutters will be approaching cable/satellite rates sooner than later. Even price increase from established players leaves that much less in users’ budgets for Apple once they finally get around to launching their streaming service.