Netflix announced Thursday it is raising the prices of some of its subscription packages for US, UK and some other European subscribers. It’s the first price hike for those countries in two-years and comes as the online TV streaming business plans to expand its production output.
The US-based streaming network said it will raise the price of a standard UK plan 50p to £7.99 per month and the premium plan by £1 to £9.99 per month. The basic, non-HD UK subscription will remain at the current price of £5.99.
In the US, meanwhile, the standard price plan is going up $1 and the premium package will increase by $2.
"From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster,” Netflix said.
Indeed, competition in the media streaming industry is increasing and Netflix has announced plans to expand its production output. Investment will rise from around $1 billion to some $7 billion, according to Netflix CEO Ted Sarandos, in a recent interview with Variety.
Amazon, Netflix and US streaming service Hulu, are all reported to be working hard to discover and create the next “Game of Thrones” and secure the popularity of their business.
The price rises follow confirmation that Netflix is investing $400 million in setting up a permanent production hub in Canada. Canadian subscribers experienced a subscription price hike earlier this year.
The online media business ended the US trading day around 5% higher Thursday, which brings the year-to-date gain of the company’s stock price above the 50% mark.
While the latest price hikes aren’t huge, they underscore Netflix’s ambition to create more original content, both ongoing series and original films too.
One of the 40 new movie titles promised by Netflix includes its newest production, Mudbound. It was promoted at the Toronto Film Festival in September and is set for a dual cinema and streaming release date of November 17.