Netflix has begun to notify its U.S. users that the previously-announced subscription fee raise will take effect in May, Variety reports. The move marks its biggest price increase to date and is part of Netflix’s plans to invest in more original content and build the overall streaming experience.
Existing members will see the $8 plan go to $9 per month, the standard $11 plan will bump up to $13, and the $14 subscription increased to $16. New members will be charged the updated prices immediately.
The new subscription prices will seemingly please investors, however, as Netflix stock is currently up 6 percent. CNN points out that as of last quarter, Netflix had over 58 million subscribers in the US and 137 million globally. The streaming provider expects to surpasses 147 million global subscribers by the time of its next earnings report.
Netflix’s price spike comes as more and more companies are getting in on the streaming action, including Disney+ that is scheduled to launch this year.