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Netflix is raising the price of its most popular streaming option by $1 a month to $9.99 for new customers in the US, Canada and parts of Latin America following a similar move in Europe earlier this year.
Existing customers will have a grace period of varying lengths before prices go up for them, the company said on its website. The increase affects the plan that lets two viewers use a subscription at once. Prices for the ‘one-screen’ and ‘four-screen’ plans aren’t affected.
With more than 65 million subscribers worldwide, Netflix is counting on customer gains and higher prices to sustain revenue growth and finance the cost of its film and TV offerings.
The streaming giant reportedly has $4.3 billion in programming costs over the next year, and almost $5 billion more for the following three years.