Netflix raising prices ‘starting today,’ company confirms in letter

(NEXSTAR) – Netflix is getting more expensive – again. The company told shareholders in a letter Wednesday that it is raising prices on some of its subscription plans.

Netflix has three pricing tiers available to customers: An option with ads, “Standard” and “Premium.” Some customers are also grandfathered into a “Basic” plan, but it’s not an option people can choose now. More expensive tiers allow customers to stream on more devices and add members in other households.

The new price hike is hitting Netflix’s “Basic” and “Premium” tiers. Each option is now $2 more expensive than it used to be, $11.99 for “Basic” and $22.99 for “Premium.”

The pricing of Netflix’s cheapest option, which includes ads, will remain at $6.99 and the “Standard” tier will stay at $15.49.

The adjustments would be “starting today,” Netflix said in the letter. The company told Nexstar it impacts both new and existing customers.

Netflix defended its pricing tiers, saying, “Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.”

Hulu’s cheapest plan is $7.99 per month, while HBO’s is $9.99, both of which include ads.

Netflix recently started cracking down on password sharing, forcing people who were sharing an account across many households to start paying more. The streamer told shareholders the effort has been working.

“The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full-paying memberships are demonstrating healthy retention,” the company said.

Revenue in the third quarter was in line with expectations, Netflix said, despite a “challenging” six months that included a WGA and SAG-AFTRA strike.