New York: The internet entertainment service provider Netflix has announced that it will be raising prices of all of its subscription plans. The move has sent its stock price surging for more than six per cent.
On Tuesday, Netflix increased the price of its most popular standard plan from 10.99 US dollars to 12.99 dollars. The subscription plan allowed the users to watch HD videos on two different screens at the same and have access to unlimited movies and TV shows.
The price of the platform's basic plan rose by 1 dollar to be 8.99 dollar a month while the premium plan rose to 15.99 dollars.
The pricing takes effect immediately for new subscribers and existing users will have to pay the hiked prices in a few months.
It is for the fourth time that the online videos streaming platform has raised prices for subscription plans. October 2017 was the last time that Netflix had raised prices of standard and premium plans.
Previous price hikes had little impact on subscriber growth and so will this time price rise, said analysts.
Netflix's announcement came one day after Comcast's NBC Universal said that it will debut a free, ad-supported streaming service to subscribers of traditional pay-TV service in the first quarter of 2020.