Netflix is raising its prices starting this month

HBO CEO Throws a Punch – Slams Netflix's Library of Original Content, “More is not better, only better is better”

Netflix Inc's USA business announced the first rises in monthly fees in two years on Thursday, hiking costs for two of its three main subscription plans as it spends heavily on its own original content.

The price of the Standard tariff, which offers two-screens of simultaneous viewing and HD video, is going up from $9.99 to $10.99.

Wall Street appeared to approve of the move, as Netflix shares were up almost 4% to $191 apiece in midday trading. The basic plan fee remained at US$7.99. Although smaller, newer or niche services with less TV content could act as supplements to behemoths like Netflix, Hower said, it's plausible that the ecosystem for streaming video may only be able to support large, consolidated packages of content that appeals to wide audiences.

Mashable reports that the price increase will begin in November.

The company is raising the prices on its standard and premium streaming subscription services.

You might notice something different on your Netflix bill starting next month. It upped the price of its top-tier plan, which allows ultra-high-definition video streaming on up to four screens at the same time, to $13.99 a month from $11.99.

In October 2015, Netflix last raised its prices for new members, and then embarked on a process of "un-grandfathering" existing customers into new prices.

Netflix rolled out a price increase a year ago and there was much investor worry about potential sub declines.

RBC Capital Markets analyst Mark Mahaney believes Netflix's programming line-up is so compelling that the service could charge even higher prices and still retain most of its audience.

The majority of subscribers will not be happy with paying $12-24 more per year to receive Netflix.

Netflix and rival Amazon Prime have been pumping money into original shows to win fans and set themselves apart in an increasingly competitive bid for viewers' time.

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