Netflix is raising the prices on all of its streaming tiers. The price hikes will range from 13 to 18%, its largest price hike ever. The lowest $8 tier will now cost $9 while the $11 and $14 plans will increase to $13 and $16, respectively.
The rate hikes constitute a jump of between 13 and 18 percent — the company’s biggest increase since launching its streaming service 12 years ago — and will take effect immediately for new customers. Existing subscribers will see the price increase on their bills over the next three months.
Customers in Latin American, the Caribbean and some other countries will also see the higher rates. Major international markets like Mexico and Brazil won’t be affected.
The streaming service’s last price hike came in 2017, when it raised the prices of its two highest service tiers. “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” Netflix said in a statement to CNBC.
The extra cash will go into the Netflix coffers at an opportune time for the streaming giant, as it has been spending billions of dollars on new content, much of it Netflix exclusives available only only on the service. Original titles include House of Cards, Orange is the New Black, Stranger Things, and many other series.
Last October, the company announced that it would be raising another $2 billion in debt to fund “general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”