Ernesto S. Ruscio/Getty Images / Netflix
Netflix is raising the price for two of its three US subscription tiers.
The most popular plan, the standard plan, which includes high-definition streaming on up to two screens, now goes for $1 more at $14 per month, while the most expensive premium plan got a $2 hike to $18 for 4K HDR and more simultaneous screens.
The most basic plan will remain at $9 for lower resolution and one screen, the company said.
Netflix
"We understand people have more entertainment choices than ever and we're committed to delivering an even better experience for our members," a spokesperson said. "We're updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall line up. As always we offer a range of plans so that people can pick a price that works best for their budget."
Netflix has been under press to add subscribers at a faster clip, after posting lower-than-expected numbers in its third-quarter earnings report earlier this month.
Investors cheered the price increase, a potential revenue booster, sending shares higher by more than 4% in trading Thursday.
"Though the Q3 subscriber adds were disappointing, we believe the NFLX Long Thesis is well intact," Mark Mahaney, an analyst at RBC Capital Markets, said of the earnings report. The bank's research indicates that customers usually subscribe to multiple services "and Netflix is almost always one of those services," it said.
Those competing services are a growing group, though, and many are increasing the offerings in their own content library to compete. Perhaps most notably, Disney has doubled down on streaming in its latest corporate reorganization as the COVID-19 pandemic hobbled other important business segments like theme parks and cruises.
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