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Netflix to raise prices for its streaming service

Netflix announced today that it would increase prices for new subscribers by one to two dollars extra per month within the next few months.
Netflix announced today that it would increase prices for new subscribers by one to two dollars extra per month within the next few months.
Photo by Justin Sullivan/Getty Images

Get ready to pay more money to stream movies and TV shows over Netflix.

The company announced today that it plans to charge customers more money for its streaming service in the next few months. The company, which currently charges $7.99 a month for unlimited streaming, plans to raise prices for new customers by one to two dollars extra per month. The company said it would keep rates the same for its existing 35.7 million U.S. subscribers "for a generous time period."

The news of a price increase comes nearly two months after Netflix agreed with cable giant Comcast on a deal to increase streaming speeds by providing a more direct connection between content servers and users. Internet service providers across the country such as Comcast and Verizon argued that Netflix should help cover the costs of delivering content because of the bandwidth-intensive nature of streaming video, and Netflix's deal with Comcast represents the first paid connection to an internet provider for direct access to its content.

The price increase, according to Netflix CEO Reed Hastings, is in response to the rising costs of licensing rights for movies and TV shows. Prices for existing content on Netflix have continued to rise, and the company could seek to expand its library by signing more deals with content providers in the near future.

The company has also experimented with original content, releasing the second season of "House of Cards" earlier this year while also debuting the second season of "Orange is the New Black" this summer. The company recently signed deals with Marvel and Sony to produce new original shows next year, which will compete with new original programming planned by streaming rivals Amazon and Hulu.

Netflix also announced today that it added over 2 million new subscribers in the United States so far this year.