Netflix (NASDAQ: NFLX) and Hulu have both recently announced they would be increasing rates on its streaming plans in the near future. They are saying that the increases are needed to reflect the value of the new additions to its services. For Nexflix, this means funding the slate of original content the company has been investing in. For Hulu, the addition of live TV is sparking the increase.
Netflix has announced that the prices for all three tiers of its service are going up, with its most popular plan getting the largest percentage increase at 18 percent. The basic single-screen SD plan is going from $8 to $9 per month, while the two-screen HD plan is increasing to $13 from $11. The premium three-screen 4K/HDR plan will go from $14 to $16.
New subscribers to Netflix will begin paying the higher rates immediately. For existing accounts, the new pricing will be rolled out over time. Netflix says that all accounts will reflect the new pricing within the next 90 days.
Hulu is also planning to adjust its pricing model next month. While the cost of its entry-level on-demand package is going down by $2 and its ad-free on-demand plan is remaining the same price, the company is increasing the price of its live TV service by $7 per month. Adding live TV to either of the other plans will now add $39 onto your monthly bill, as Hulu seeks to make that service more profitable.
According to a release from the company, subscribers who sign up on or after February 26 will be charged the new pricing model immediately. Existing customers will be charged the new pricing with their first bill after that date. Critics were quick to note that the new price is more expensive than Google’s YouTube TV and AT&T’s DirecTV Now.