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Illustration: Sarah Grillo/Axios

Netflix announced Thursday it will charge customers $14 for its standard monthly subscriber plan and $18 for the premium plan, the Verge reports.

The big picture: The business model behind Netflix's strategy is to accumulate as many users worldwide with as much original and licensed content as possible, and then hike the monthly subscription prices on those users once they are hooked.

  • The basic plan will remain $9 per month, per the Verge.

Between the lines: Some big entertainment companies are eyeing price hikes to make up for pandemic headwinds. Spotify hinted at its own cost increase in a Thursday earnings call and both companies gave modest Q4 guidance.

What they're saying: "We understand people have more entertainment choices than ever and we're committed to delivering an even better experience for our members," a Netflix spokesperson told CNET.

  • "We're updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall line up. As always we offer a range of plans so that people can pick a price that works best for their budget."

The bottom line: Generally speaking, streaming TV is getting more expensive, making it less of an affordable alternative to cable.

Editor's note: This story has been updated to reflect that Netflix's standard plan will increase by $1 and the premium plan will increase by $2.

Go deeper

Kendall Baker, author of Sports
Nov 17, 2020 - Sports

Actors Ryan Reynolds and Rob McElhenney buy a soccer team

Illustration: Annelise Capossela/Axios

Actors Ryan Reynolds and Rob McElhenney have teamed up to acquire fifth-division English soccer team, Wrexham AFC, one of the oldest clubs in the world.

Why it matters: The two actors have promised to invest at least $2.64 million and plan to use their own stardom — plus a documentary series — to promote the club globally and hopefully take it to new heights.

Pennsylvania certifies Biden's victory

Photo: Aimee Dilger/SOPA Images/LightRocket via Getty Images

Pennsylvania officials on Tuesday certified the state's presidential election results, making President-elect Joe Biden's win in the key battleground official.

Why it matters: The move deals another blow to President Trump's failed efforts to block certification in key swing states that he lost to Biden. It also comes one day after officials voted to certify Biden's victory in Michigan.

Trump bump: NYT and WaPo digital subscriptions tripled since 2016

Data: Axios reporting and public filings; Chart: Axios Visuals

The New York Times and The Washington Post have very different strategies for building the subscription news company of the future.

The big picture: Sources tell Axios that the Post is nearing 3 million digital subscribers, a 50% year-over-year growth in subscriptions and more than 3x the number of digital-only subscribers it had in 2016. The New York Times now has more than 6 million digital-only subscribers, nearly 3x its number from 2016.