But Netflix subscribers have rebelled against price increases in the past, most notably in 2011 when the company stopped bundling its streaming service with its DVD-by-mail service, resulting in price increases of as much as 60 percent for customers who wanted both plans. The standard package that allows for simultaneous streaming on two screens is now $10.99 per month.
Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading.
Since Netflix's last price increase in October 2015, its USA subscriber base has grown from 44.7 million to an expected 52.7 million at the end of September. Beginning on October 19 Netflix will alert users to the new prices, and all users will be given 30 days notice before their next billing date. The premium service, which provides viewing on up to four screens (plus ultra HD content access), is $13.99, up from $11.99. Netflix expects to spend $6 billion a year alone on programming this year, and the expenses are likely to rise as it competes against streaming rivals such as Amazon, Hulu, YouTube and, potentially, Apple for the rights to future shows and movies.
For now, analysts don't see terribly anxious, nor do investors, with Netflix's share price gaining 4.3% to $192.34 in recent market action. Netflix's subscriber base has steadily grown over the years and in June, after surpassing the 50 million subscriber mark in the U.S. This service still continues to only cost customers $7.99 per month, reports Fortune. It also has a larger pool of content for viewers to enjoy.
Netflix hiked the price of its HD streaming plan back in April 2014, from $7.99 to $9.99. The change will roll out to existing USA members "over the course of the next several months", Netflix said.