Netflix just announced the biggest price hike of its streaming era.
U.S. subscribers will see their monthly rates climb by 13 percent to 18 percent — that largest increase since Netflix launched its streaming service more than a decade ago, EW has confirmed.
The service’s most popular plan will see the largest rate hike, from $11 to $13 (this is an HD feed that includes up to two devices). The least expensive plan is going from $8 to $9 per month, while the ultra-HD 4K plan is going from $14 to $16. “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement.
The money will help pay for the company’s massive investment in content. According to AdWeek, Netflix spent $8 billion on content in 2018 and plans to spend even more this year.
The Associated Press notes this is the fourth time Netflix has raised its prices — the last hike being in 2017 — but that this is the first time a raise will impact all of the company’s subscribers (which total roughly 58 million in the U.S.).
The new prices are already on the Netflix subscription page for new subscribers. They will be rolled out to current subscribers over the next few months.
Netflix has invested more heavily in original content than any U.S. television entity in a bid to dominate the marketplace amid increasing competition from rivals such as Amazon, Hulu, Apple and, soon, Disney. According to Fortune, by comparison, HBO spent 2.5 billion in 2017 and CBS spent $4 billion. Netflix also pointed out that rival HBO Now is $14.99 and ad-free Hulu is $11.99 for their cheapest plans, respectively.