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Bad news ... Netflix is increasing its prices

Here's how much its most popular package will go up.

Netflix is increasing its subscription prices for the first time in two years.

The streaming giant is raising the price of its mid-range plan (the most popular option), which allows people to watch programs simultaneously on two different devices and offers HD viewing.

This package currently costs $9.99, but starting in November it will cost $10.99, Netflix told GoMN.

It's top package meanwhile, which offers ultra-HD or 4K viewing, is rising from $11.99 per month to $13.99.

Its basic package, which limits subscribers to one screen at a time in standard definition, will stay at $7.99 a month.

The Tip Jar: Are online TV streaming packages cheaper than cable?

Subscribers will start being notified on Oct. 19, and will be given 30 days to accept the new terms.

The company says since it last increased the price, it's added new interactive content and a downloading feature to its service, so it's hoping subscribers think it's worth the extra $1-2.

The Associated Press says the price rise is being driven by Netflix's efforts to increase its profit margins as it plunges billions of dollars into its popular original content, including Stranger Things and House of Cards.

Netflix's most popular package is more expensive than Amazon Video ($99 a year for a Prime membership) and Hulu ($7.99 a month with commercials, $11.99 without).

Eventually, cord-cutters will have to make choices

By the Tip Jar's Adam Uren

I'm as big a cord-cutter there is, turning my nose up at expensive cable packages that I don't think come close to offering value for money, in favor of streaming packages more tailored to my needs.

But it's inevitable that the costs of these packages will rise, particularly if they're spending as much producing original content as Netflix does ($6 billion this year alone).

Eventually, the drip-drip of gradual price rises will add up, to the point where the suite of streaming packages to which you subscribe will cost close to what you'd pay for cable.

At that point, there will be cord-cutters who face a choice of continuing to pay for the content, or asking themselves which streaming services they can live without.

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