Netflix is raising prices by a record amount amid growing competition and a shift to original programming over licensed content.
The fee for the most popular unlimited streaming plan will climb 18 percent to $13 per month, the largest increase in the firm’s 12-year history, according to the Associated Press. Its cheapest plan will rise to $9 a month, up from $8, while a premium offering will increase to $16 a month.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement.
The higher fees, which will affect nearly 79 million subscribers, come after the Los Gatos, Calif.-based company borrowed billions of dollars to finance an expansion into original programming with shows such as “Stranger Things” and “Orange Is The New Black,” along with critically acclaimed movies such as “Roma.”
Competitors Disney and AT&T, bolstered by new acquisitions that significantly expand their content offerings, are planning to pull shows from Netflix before launching their own services. Apple is also investing significantly in programming, while Hulu and Amazon each offer unlimited streaming options at price points similar to Netflix.
Netflix stock rose 5.5 percent to $351.26 in New York trading.
