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How Will Netflix's Price Hikes Hit You?

Those series' success helped Netflix land more Emmy award nominations than any TV network besides HBO this year.

The streaming giant on Thursday raised the price of two of its memberships.

Netflix's standard plan, which lets users watch video on two screens at once, is rising from $9.99 a month to $10.99 a month. Entry level plans will remain at $7.99 a month.

Shares of the Silicon Valley-based company jumped more than four percent to $192.44 (R 2633.76) in trading following news of the relatively small price hike.

Tests by MarketWatch staffers show there was no increase listed for customer's current plans.

Netflix is increasing the price on two of its subscription tiers.

All your favourite Netflix shows are about to come at a higher price. The report indicates that subscribers should be formally alerted by Netflix on October 19, with at least thirty-days notice before the higher rates take effect.

The company is raising the prices on its standard and premium streaming subscription services. Although smaller, newer or niche services with less TV content could act as supplements to behemoths like Netflix, Hower said, it's plausible that the ecosystem for streaming video may only be able to support large, consolidated packages of content that appeals to wide audiences.

People may not like them, but price increases will likely continue to be necessary as Netflix spends more and more on content - close to $7 billion next year, according to its content boss Ted Sarandos. Earlier this year the company announced it was deep in debt, partially from the money the company spent producing original content. The company expects to spend almost $7 billion on content for its service next year, including movies, TV series and comedy specials.

But some were ok with the increase, and thought it was worth it for all the shows and movies Netflix has to offer.

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