Netflix announced today that it’s raising the price of its standard streaming service from $8.99 to $9.99 per month for new customers in U.S., Canada and Latin America. The monthly subscription rate for preexisting subscribers who signed up at $8.99 price point will remain unchanged for the next 12 months.
In May 2014, Netlix raised the monthly price of its standard service — which allows for two simultaneous streams — from $7.99 to $8.99 for new U.S. customers, but locked the price for preexisting subscribers at $7.99 through May 2016. At the time, it also added a $7.99 a month plan for non-HD streaming and an $11.99 a month plan offering four simultaneous streams and access to 4k Ultra HD titles
In March 2014, Amazon upped the price of its Prime subscription service from $79 to $99 a year, where it has remained. Because in many states Amazon collects taxes on its Prime membership — which also includes free shipping — it meant that the annual subscription cost was comparable to Netflix. With the latest price increase, Netfix is now more expensive. However, it is still cheaper than Hulu’s $11.99 ad-free streaming subscription, added last month as an alternative to its limited ad ($7.99 a month) and free ad-supported options.
In the nearly year and a half since Netflix’s last price increase, the SVOD race has heated up considerably, with Hulu recently picking up the Epix catalog from Netflix, Amazon establishing itself as a true TV series player with its Golden Globe and Emmy wins for “Transparent,” and niche providers such as DramaFever and MUBI emerging as players in the space, if not outright threats.