Netflix Price Increase: How Much Will It Cost You?

Streaming service Netflix (NFLX) will raise prices for its 58 million U.S. subscribers effective over the next three months.

The new increase from the company will see prices on the most popular plan raise from $11 per month to $13 per month. The cheapest streaming plan with Netflix will go from $8 per month to $9 while the premium plan will hover around $16 per month – up from $14 per month.

These increases are a 13 to 18 percent price hike for the company and the largest it has made over the last 12 years.

New customers will pay the price increase at the start of their subscription service while existing customers will see the higher price being rolled out over the next three months, the Associated Press reported.

“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said.

Netflix has raised its prices in the U.S. four times with the most recent increase occuring in 2017. With 58 million U.S. subscribers as of September, the price increase will affect the largest group of Netflix customers ever in the states.

The price increase is anticipated to help Netflix fund more original content and finance debt it has taken on to combat competition such as Disney, Amazon, and AT&T, the Associated Press reported.

Netflix will also be raising the prices of its services in roughly 40 Latin America countries and markets. In September, Netflix reported that it had nearly 79 million subscribers outside the U.S.

As of this morning, Netflix stock was up over 5 percent.