Netflix is raising its prices again. Here’s why.

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Netflix announced that it will raise its prices again, this time by $1 to $9.99 a month, giving the streaming video service more money to develop original content. The price increase will take effect on Nov. 11 for new customers. Existing customers will continue to pay the current rate, $8.99 a month, until October 2016. Longtime customers who still pay $7.99 a month will hold onto that rate until at least May 2016.

The change may reflect that it is getting more expensive for Netflix and other video distributors to secure deals for television and movie content. The price hike will allow the company to offer more original content, said company spokeswoman Anne Marie Squeo. Even as Netflix has surged past 65 million users globally, the firm faces pressure from other new streaming video apps including Dish’s SlingTV, HBO Now and even offerings from Verizon and Comcast.


Netflix is raising its prices again. Here’s why.