Will subscribers willingly accept the new rates or should we expect the sort of pushback Netflix experienced in 2011 with its Qwikster misstep?
The company also will increase the cost of its cheapest plan, the basic tier that streams to only one device in standard definition, by a buck to $9 a month from $8, the first increase to that entry-level price in nearly eight years.
In a statement, Netflix said the increase in price was required to fund new content and the interface: "We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience".
Streaming service Netflix has announced it is raising its prices in the US.
Finally, its most premium offering that allows customers to binge in 4K will come in at $16-per-month instead of $14-per-month. (The lowest Hulu tier includes ads at $8 per month.) Netflix still comes in under HBO's streaming price, which is $15 per month. The new prices go into effect immediately for new subscribers and will be phased in for existing subscribers over a three-month period.
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That compares to 3.2 per cent for this time one year ago, TSA spokesman Thomas Kelly said in a statement to The Associated Press. That decision was made after an unusually high number of workers called in sick.
The news of a price increase won't go down well with customers but it seems that investors are happy with the news.
Netflix has invested more heavily in original content than any USA television entity in a bid to dominate the marketplace amid increasing competition from rivals such as Amazon, Hulu, Apple and, soon, Disney.
Netflix offers USA customers a "basic" version which will increase to $8.99 from $7.99 and a plan for those getting "ultrahigh" definition video which will increase to $15.99 from $13.99.
The money will help pay for the company's massive investment in content. Netflix lost 600,000 subscribers - about 2 percent of its total customers at the time - after that switch. The most affordable Netflix option, the "basic" plan, increases by $1, from $8 per month to $9. Amazon-owned IMDB also recently launched a free streaming service, called Freedive. The company's stock surged 6.5 percent to $354.79 in Tuesday's early afternoon trading.