Netflix Raises Monthly Prices Following “Bird Box” Success
It’s time to take out the pocketbook - Netflix (NFLX - NasdaqGS) just increased their monthly prices by 18 percent.
The streaming service announced Tuesday that their most popular monthly plan is increasing from $11 to $13. Netflix is also raising their basic plan (which permits standard streaming on one device) by $1 to $9 - up some 13 percent.
“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,” a Netflix spokesperson said in a statement.
This is not the first time Netflix has increased prices. The service raised monthly costs by $1 in October of 2017 to $11 for their standard plan.
Still, it’s no time to panic - existing users won’t experience a change in their account pricing for another few months (although the price hike will immediately affect new users).
While Netflix stock has seen a steady increase over the past several months (increasing some 30 percent this year), the service’s most recent boom is due in large part to the success of their Netflix Original films - including “Bird Box.”
Released in December, “Bird Box,” starring Sandra Bullock, was reportedly streamed by over 45 million accounts in the first week of its release - signaling a shift in focus for the company toward funding more Originals.
According to reports, “Bird Box” was Netflix’s biggest-ever release. And with other popular recent releases like “Black Mirror” movie “Bandersnatch” - which met with much critical acclaim over its innovative, choose-your-own-ending format - Netflix seems set on a new path toward experimentation and success.
The streaming giant’s stock was up on Tuesday by over 6.8 percent, trading at midday around $355 per share.