Popular streaming service Netflix announced Thursday it plans to raise the price of its most popular plan.
The price of the plan will increase by 10 percent -- or $1 -- from $9.99 to $10.99. This is the first time the company has increased prices in two years, USA Today reported.
Netflix’s most popular plan allows subscribers to view content simultaneously on two interconnected devices. A different premium plan, which allows users to view content simultaneously on four different screens, will increase 17 percent in price -- or $2 -- from $11.99 to $13.99.
According to The Associated Press, the price hikes will affect nearly 53 million Netflix subscribers.
The change in prices comes as Netflix seeks higher profits and aims to secure funding for critically acclaimed shows, like “Orange Is The New Black” and “House of Cards,” and as it competes against rivals Amazon and Hulu, among others, to secure rights to shows and movies, the AP reported.
A Netflix representative said the company will email subscribers and send out app notifications on or after Oct. 19, 30 days before their billing cycles. Users will have 30 days to accept the new rate, change their plans or cancel the service.
There will be no change in price to Netflix’s basic plan, which allows users to view content on one screen for $7.99 monthly.
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