SAN FRANCISCO (AP) – Netflix is raising the price of its Internet video service by $1 in the U.S. and several other countries to help cover its escalating costs for shows such as “House of Cards” and other original programming.
The new price of $10 per month for Netflix’s standard plan won’t affect most of the service’s existing 42 million U.S. subscribers.
Subscribers who have been with Netflix since May 2014 will still pay $8 per month under a two-year rate freeze adopted when the company last raised its U.S. prices by $1. Customers who signed up since the last price increase will pay $9 per month until October 2016.
Netflix Inc. is charging new subscribers more in anticipation of its programming costs rising from $3 billion this year to $5 billion next year.