Netflix announces largest subscription price hikes since launching

The online streaming platform will up the cost of all of its subscriptions.
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If you're a Netflix subscriber, you can expect to see the amount you pay go up over the coming months.

The online streaming giant announced on Tuesday that it will be upping the subscription cost for all three of its plans, which go into effect immediately for new subscribers, and will be phased in over the next three months for existing customers.

Here's a look at what the changes will be.

Plan typeCurrent costNew cost

Basic

$8

$9

Standard HD (most popular)

$11

$13

Premium UHD

$14

$16

The price hikes of between 13 and 18 percent are the largest increases in the company's 12-year history, according to CNBC, and the fourth time it has hiked prices since it launched.

Netflix currently has 58 million U.S. subscribers and 78 million outside the U.S.

In a statement, the company said the raised prices will ensure it can "continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members."

Netflix has been investing heavily in original content in recent years, and is facing increasing competition not only from the likes of Hulu and Amazon Prime, but content producers like Disney, which will eventually pull all its content from Netflix as it launches its own subscription streaming service.

Just last month, Netflix announced it'd be paying $100 million to stream "Friends" over the next year, having initially announced the '90s sitcom would be removed from its service as its contract with AT&T WarnerMedia was coming to an end, as Recode reports.

At $13, Netflix's standard HD package, which allows you to use two simultaneous streams, is still cheaper than the $15-a-month HBO charges for a subscription. Hulu typically charges $7.99-a-month with commercials, or $11.99-per-month without.

The reaction to the Netflix price hike is a mixture of some saying they'll be canceling their subscriptions, and those saying it's well worth the money, particularly considering the price of cable TV packages.

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