Netflix's lowest subscription tier, which offers one screen at a time in standard definition, will remain at its current cost of $7.99 per month, for now.
There is some good news for subscribers to Netflix' basic, single-screen streaming plan.
Yes, the word has come down from Big Red that prices are going up again, and users will be notified on October 19th of their plan's increase. We believe that Netflix's pricing power has increased materially over the past few years as their content slate and technology has improved. That plan now costs $11.99, but it will go up to $13.99 with rate increases. It will start emailing notifications about the new prices to affected subscribers October 19, giving them 30 days to accept the higher rates, switch to a cheaper plan or cancel the service.
In a recent report, Piper Jaffray analyst Michael Olson argued that Netflix's global markets offer the most exciting subscriber growth potential.
Following a subscriber growth miss in 2016, Netflix CEO Reed Hastings blamed the public reaction to the price hike. They increased their spending budget to $6 billion this year, and chief content officer Ted Sarandos recently said it will likely go up to $7 billion next year. The premium plan, which provides 4K video across four simultaneous screens, will see its price bumped up by $2 from $11.99 to $13.99. The last time Netflix raised its prices was in 2015, and since then it has implemented a downloading feature and more interactive content, according to THR. He predicted the upcoming price increase will generate an additional $650 million in revenue next year. Making new subscribers pay up starting now also makes the decision to launch the second season of Stranger Things later this month that much more impressive.