October 08, 2015
For the second time in the last two years, Netflix will raise its subscription price to sustain revenue growth and cover the expanding cost of programming for its TV and film offerings.
RELATED ARTICLE: Analyst: Comcast should buy Netflix, not compete with it
Fortunately, current subscribers won't be immediately affected by the $1 hike to the "Standard" plan, which will rise to $9.99 after year long grace period, Bloomberg reports.
The price increase will go into effect in the United States, Canada and Latin America. Worldwide, Netflix has amassed 65 million subscribers and is relying on revenue from customer growth to fund $4.3 million in programming costs over the next year and nearly $5 billion more for the following three years.
After adding Australia, New Zealand and Japan in 2015, the company plans to start selling subscriptions in Spain, Portugal and Italy later in October.
The prices on Netflix's $7.99 1-screen plan and $11.99 4-screen plan will not be affected by the change.
Last May, the company increased the standard plan from $7.99 to $8.99.
