Netflix Inc. NFLX shares spiked higher on Thursday afternoon after The Verge reported the company is raising its basic plan prices from $13 to $14 per month and its premium plan prices from $16 to $18 per month.
The new pricing for the standard plan is a $1 price increase and the new premium tier cost will see a $2 increase. The Verge reports new subscribers will have to pay the updated monthly fees and current subscribers will see the new prices introduced over the next few weeks.
The basic $9 plan will remain as is.
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Netflix's primary business is a streaming video-on-demand service now available in almost every country worldwide except China.
In 2011, Netflix introduced DVD-only plans and separated the combined streaming and DVD plans, making it necessary for subscribers who want both to have separate plans.
Netflix shares were trading up 5.05% at $510.81 at the time of publication on Thursday. The stock has a 52-week high of $575.37 and a 52-week low of $281.14.
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