Netflix has said that it will be increasing the prices of its streaming services for its subscribers in the United States by as much as 18 percent, as the tech titan attempts to cover the costs of ploughing massive investment into its original content.
The prices for its most popular standard viewing plan, which enable users to stream content on two devices at the same time, will be increased to $12.99 per month from the original $10.99 per month. Meanwhile, its basic plan will increase to $8.99, and its premium plan will increase to $15.99.
The shares of Netflix were boosted by the news. This afternoon, it opened more than six percent higher in the United States.
On Twitter, a spokesperson for the company confirmed that its prices would still be the same for the users in the United Kingdom after the platform increased the costs of British subscription in 2018.
The move was the first price increase for the United States since 2017.
In a statement, the company stated: “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members.”
Netflix has been keen to raise more cash for its lucrative original content operation by creating top-rated shows including Stranger Things, Black Mirror, and The Crown.
Fending off competition from the likes of Sky’s Now TV and Amazon’s Prime Video service, the long-term debt pile of Netflix has nearly doubled from $3.4 billion (£2.8 billion) in 2016 to $6.5 billion in 2017. According to Reuters, some analysts have predicted that the firm will have hit a debt level of $8.33 billion by the end of last year.
The news comes ahead of the upcoming quarterly results of Netflix, which are scheduled to be published after the market closes on Thursday evening.
The consensus estimates as collated by S&P Global Market Intelligence have predicted that the revenue of Netflix for 2018 to have reached $15.8 billion, with a net income amounting to $1.8 billion. Its share price increased by nearly 20 percent across the last year.