The Associated Press is reporting that Netflix has raised all the prices on all of its subscription plans for its U.S. viewers.
According to the media house, this is because the streaming company is investing more in original contents amid growing competition from other streaming services.
The company’s most popular subscription plan, which allows high-definition viewing on two screens, has now jumped from $10.99 to $12.99 per month. While the cheapest, non-HD plan has risen from $7.99 to $8.99, and its premium plan from $13.99 to $15.99.
This is the largest hike since the company launched its video streaming service 12 years ago, and this increase has drawn a positive response from Wall Street, where Netflix’s stock increased 6.5 percent on Tuesday.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members,” Netflix tells NPR in a statement.
AP adds that the California-based company has accumulated extensive debt as it invests in that original content, to the tune of more than $8 billion dollars for 2018.
The increase in subscription price will apparently help them balance their books.