Netflix which is one of the largest video streaming service providers in the world has announced the increase of its subscription prices in the next billing cycle. Sending messages to subscribers, the company stated that it was planning to increase the fee by $1 to $2. The price of the basic plan will rise from $8 to $9 per month, the standard plan that includes HD streaming on two devices will go from $11 to $13 per month, and the price of its premium plan will increase from $14 to $16.
This comes after the company announced its plans of increasing its investment in the production of original shows. It budgeted $8 billion for new shows and movies in 2018, the company announced when it reported third-quarter earnings in 2017. The investment has been seen to be paying off after the series of awards that the company won last year are anything to go by.
The company has reported that the viewers have accepted the decision citing that they were willing to pay as long as they would be provided with a variety of shows. However, the company has been facing stiff competition from other companies such as Apple which recently unveiled a new streaming service which will also feature original content. However, the company did not announce the launch date of the new program. Netflix will just have to prepare and wait for this gruesome competition that is expected to begin anytime this year.