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Netflix raising prices for 58 million US subscribers as costs rise

FILE- In this July 17, 2017, file photo the Netflix logo is displayed on an iPhone in Philadelphia. Netflix lifted the usually tightly sealed lid on its viewership numbers in a recent tweet that disclosed 45 million subscriber accounts had watched the thriller, “Bird Box,” during its first seven days on the service. That made the film the biggest first-week success of any movie made so far for Netflix’s 12-year-old streaming service. (AP Photo/Matt Rourke, File)
FILE- In this July 17, 2017, file photo the Netflix logo is displayed on an iPhone in Philadelphia. Netflix lifted the usually tightly sealed lid on its viewership numbers in a recent tweet that disclosed 45 million subscriber accounts had watched the thriller, “Bird Box,” during its first seven days on the service. That made the film the biggest first-week success of any movie made so far for Netflix’s 12-year-old streaming service. (AP Photo/Matt Rourke, File) FILE- In this July 17, 2017, file photo the Netflix logo is displayed on an iPhone in Philadelphia. Netflix lifted the usually tightly sealed lid on its viewership numbers in a recent tweet that disclosed 45 million subscriber accounts had watched the thriller, “Bird Box,” during its first seven days on the service. That made the film the biggest first-week success of any movie made so far for Netflix’s 12-year-old streaming service. (AP Photo/Matt Rourke, File)

By Associated Press 4 min read

SAN FRANCISCO (AP) – Netflix is raising its U.S. prices by 13 to 18 percent, its biggest increase since the company launched its video streaming service 12 years ago.

Its most popular plan will see the largest hike, to $13 per month from $11. That option offers high-definition streaming on up to two different internet-connected devices simultaneously. Even at the higher price, that plan is still a few dollars cheaper than HBO, whose streaming service charges $15 per month.

The extra cash will help to pay for Netflix’s huge investment in original shows and films and finance the heavy debt it has assumed to ward off rivals such as Amazon, Disney and AT&T.

While subscribers might bemoan a bigger monthly bill, Wall Street cheered, sending Netflix’s shares up 6.5 percent Tuesday.

This marks the fourth time that Netflix has raised its U.S. prices; the last hike came in late 2017 . But this is the first time that higher prices will hit all 58 million U.S. subscribers, the number Netflix reported at the end of September.